A new savings account launched today by Leeds Building Society aims to help more people onto and up the housing ladder.
The Home Deposit Saver is a regular savings account paying a variable rate of 4.00%, with a £500 bonus to savers after they receive their mortgage offer from the Society.
With house prices at a level which makes it difficult for would be homeowners to get a foothold on the housing ladder, this new initiative is likely to attract a good deal of interest.
Matt Bartle, Director of Products at Leeds Building Society, said; “We know building up a deposit is the biggest obstacle facing most first time buyers so wanted to find a way we could reward and motivate them to keep saving.”
“Paying the £500 bonus to savers once they’ve received their mortgage offer gives an extra boost to top up their funds ready for purchasing their new home.
“We’re known for our mortgage deals which support first time buyers, including through affordable housing schemes such as Shared Ownership and First Homes.
“In a first for the Society, Home Deposit Saver creates a direct link to benefit our savings members who also choose us as a lender.
“And while we had first time buyers in mind when we designed this product, we’re pleased to be able also to offer it to second steppers and other buyers as they move on to their next home.”
Up to £500 can be paid into Home Deposit Saver each month but there is no penalty for missing a month. The maximum permitted balance is £30,000 and savers can make one withdrawal per annum without penalty.
How to qualify for the bonus:
You will be eligible for a £500 bonus if:
i. You have received an offer for a residential purchase mortgage with Leeds Building Society (Re-mortgages are excluded) and
ii. You have a minimum of £2,500 in your account and
iii. Your account has been open for a minimum of 6 months.
The bonus of £500 will only be payable within the first 5 years of opening the account.
Home Deposit Saver product details
- Variable rate of 4.00% per annum
- £500 cash bonus when the account holder receives their Leeds Building Society mortgage offer for residential purchase (paid within 14 days subject to eligibility). To be eligible, the account holder must have saved for six months and have at least £2,500 in their account
- The account must be opened in the sole name of the customer and cannot be opened as a joint account
- Maximum monthly deposit up to £500
- Maximum balance £30,000
- Minimum opening balance £100
- One withdrawal per annum permitted without penalty; any further withdrawal results in account closure and movement to an access saver (penalty free)
- If you exceed the maximum number of permitted withdrawals this will result in your account being closed and transferred to an Access Saver or a similar access account
- Interest can be credited to the account or transferred to another building society/bank account or to another account held with the Society
- Can be opened and operated online, by post or in branch
Full details of Home Deposit Saver and all Leeds Building Society products can be found at www.leedsbuildingsociety.co.uk