Leeds Building Society Offers 5.65 % Five-Year Fixed Mortgage at 2 % Minimum Deposit for Buyers of £250,000+ Homes

Leeds Building Society has launched the Start Mortgage, a five-year fixed-rate product at 5.65% that permits first-time buyers to purchase a home with a deposit as low as 2%. The mortgage requires a minimum deposit of £5,000, meaning the 2% rate applies only to properties valued at £250,000 or more.

Loans can reach five times the borrower's income up to a maximum of £500,000, and applicants must earn at least £30,000 annually.

The product is available through brokers or directly from Leeds Building Society and accepts applications from self-employed borrowers as well as gift deposits. It is subject to standard affordability assessments and includes a free standard valuation with no completion fee.

Matt Bartle, director of mortgages at Leeds Building Society, said saving for a deposit remains one of the biggest hurdles for first-time buyers.

"By reducing that barrier to just 2% and combining it with flexible lending criteria, we’re helping more people move closer to owning their own home," he said. Rachel Springall, finance expert at Moneyfacts, said the Start Mortgage is a rare 98% loan-to-value deal.

She added that the ability to borrow up to five times income could make a meaningful difference for would-be homeowners who might otherwise remain stuck in the rental cycle.

The Independent reported the launch details.