Building Society Launches Shared Ownership Savings Scheme

Leeds Building Society has become the first provider to launch a savings product specifically designed to support Shared Ownership mortgage holders by helping them to grow their savings faster and enhancing their ability to staircase their ownership percentage.

The Shared Ownership Saver offers an interest rate of 6%, empowering Shared Ownership members to increase their ownership percentage on their homes through staircasing.

The launch of this new savings product reinforces the Society’s support for the Shared Ownership model, a scheme the Society believes is a possible solution for many aspiring homeowners struggling to afford to buy a home through traditional routes.

The government introduced a new Shared Ownership model in 2021 which makes it easier for borrowers to ‘staircase’ in smaller 1% increments. This new product from Leeds Building Society hopes to support more of its members to staircase their ownership percentage.

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.

Research conducted by Leeds Building Society at the end of last year showed 60% of respondents who were hoping to buy within the next five years said that Shared Ownership could help them get on the ladder, and 22% of homeowners felt it would have helped them get on the ladder sooner

Leeds Building Society has seen a 19% increase in applications for Shared Ownership mortgages (January-May 2023 vs January-May 22) in response to the challenging housing market and cost of living crisis. The Society has just won the title of Best Shared Ownership Mortgage Lender in the 2023 What Mortgage Awards, its eighth consecutive year of success in this category.

Shared Ownership Saver product information

• 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

Matt Bartle, director of products at Leeds Building Society, said: “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.”

Find out more at leedsbuildingsociety.co.uk