Legal & General Mortgage Club has announced the launch of an exclusive residential product with Leek Building Society.

The two-year fixed-rate product is available at 95% loan-to-value (LTV), priced at 5.99%, and is only available to members of Legal & General Mortgage Club.

An early repayment charge of 2% applies in year one and a 1% charge in year two, the mortgage club stated, adding that the product can facilitate the purchase of a new-build property, flat or house, with a 5% deposit. It also has a minimum residential loan size stands at £150,000, but mortgages can extend to loans of up to £500,000.

Legal & General suggested that with its high LTV ratio, the offering is designed to help those with smaller deposits, such as first-time buyers, onto the property ladder.

Head of lender relationships at Legal & General Mortgage Club, Danny Belton, said: “After the end of the Help to Buy scheme last year, the mortgage industry has had to find new ways to support first-time buyers and help them onto the property ladder.

“This competitively priced new product exclusive with Leek Building Society, offers first-time buyers the valuable opportunity to purchase a new-build property, a house, or a flat of their choice, with just a 5% deposit. This will allow advisers to help more new buyers make that important first step.”

Head of intermediaries at Leek Building Society, Nikki Warren-Dean, added: “This is a fantastic, good news story to help customers get onto the housing ladder and what a great time to introduce this new 95% LTV initiative.”

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