Leeds Building Society has launched a savings account for borrowers with shared ownership mortgages who want to purchase a greater share of their home in future.
The account has an interest rate of 6% so customers with shared ownership properties can build their savings faster and have greater potential for ‘staircasing’.
Shared ownership allows buyers to purchase a proportion of a property and rent the rest. Staircasing is the name given to the process where they can increase the share of the property they own in increments.
The savings account, which is available to borrowers who have taken out a shared ownership mortgage with Leeds Building Society, comes at a time when demand for shared ownership has grown.
The building society said it had seen a 19% increase in applications for Shared Ownership mortgages in the first five months of 2023 compared to the same time period the year before. It said this was in response to the challenging housing market and cost of living crisis.
The launch also comes as Leeds picked up the Best Shared Ownership Mortgage Lender in the 2023 What Mortgage Awards – its eighth consecutive year of success in this category.
Matt Bartle, director of products at Leeds Building Society, said: “At Leeds Building Society we continuously look for new ways to help people onto and up the property ladder.
“We are proud to launch this new savings product which is tailored to the unique needs of Shared Ownership mortgage holders. Shared Ownership is a great solution to help aspirational homeowners to get a foothold on the property ladder as buyers need a smaller deposit, allowing them to buy sooner than they might otherwise.
“This new savings product launch demonstrates our commitment to helping members achieve their goals faster.”
The average Shared Ownership property purchased by the Society’s members is valued at around £287,700. So, to staircase by a 1% increment, the mortgage holder would need to save £2,877. Someone saving £100 per month could reach this goal in two years and three months.
Shared Ownership Saver – Key info
- Interest Rate: 6.00%
- Minimum Balance: £100
- Maximum Balance: £20,000 plus accrued interest credited to the account
- Interest Paid: annually on 30th June
- Access: Instant access
- Only available to customers who have a Leeds Building Society Shared Ownership Mortgage
- The product does not mature and does not have a final deposit date
