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Leeds Building Society- new 'Reach' range

Journalist:

ended 25. January 2024

Leeds Building Society believes every generation deserves a place to call home. That’s why they’re putting home ownership in reach of more people with the launch of their new Reach Mortgage range.

 

Reach offers eligible customers a range of mortgages if their credit score means they don’t qualify to apply for one of their standard mortgage products, helping those who may otherwise face barriers reaching their dream of owning a home.

 

How Reach works

 

  • Submit your Decision in Principle (DIP) in the usual way.
  • The DIP outcome will confirm if your client is eligible for a product from the Society’s standard mortgage range, or the Reach Mortgage range.
  • If they’re eligible for Reach, it’s important you reassess the suitability of these products and any advice you give your client. The products are on sourcing systems and identifiable as “Reach”.

 

 

By introducing Reach Mortgages, Leeds Building Society is making home ownership possible for ever more people, reducing the number of people who face being turned down for a mortgage.

 

10 responses from the Newspage community

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Michelle Lawson
Director at Lawson Financial
This is a nice offering from the Leeds to try and catch those borrowers that fall through the grey area gaps of not quite being suitable for mainstream lending but only have light blips or a low credit score. The sad thing with this product is that Leeds have joined the 'DIP it and see' brigade of lenders rather than giving good solid upfront criteria for brokers and customers to refer to so we have no idea who they will fit! This will potentially cause much unnecessary work for the sake of a bit more forethought.
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Darryl Dhoffer
Founder at The Mortgage Geezer
While offering cascade products as an alternative can be helpful, the lack of clear eligibility criteria is frustrating. Brokers waste valuable time on applications that may not fit any product at all. Lenders should be upfront about the specific requirements for each type of loan. Cascade products are a gamble. We need clear eligibility criteria to avoid wasting time on applications that may ultimately be declined.
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Harps Garcha
Director at Brooklyns Financial
This is a positive development from a reputable lender in principle. I look forward to learning more about the rates that will be available with this offer. With the lender's DIP process, it would be very helpful if the lender could clarify some of their background criteria, so that the appropriate proposals can be submitted. Otherwise there will be tsunami of DIPs being submitted. Alongside these initiatives we need a boost in the supply of new homes.
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Gary Bush
Financial Adviser at MortgageShop.com
Leeds Building Societies Reach initiative in theory is another lender trying to bridge an obvious gap, post lockdowns, to attempt to assist in reinvigorating the property marketplace for first-time buyers and is an admirable offering that should be applauded by the financial community. The devil is, as always, in the detail and indeed on the outcomes from applications for the Reach scheme once Leeds's mortgage underwriters have had a chance to assess applicants. Any innovation in today's tricky mortgage market and fixed-rate price war is welcomed.
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Richard Jennings CeMAP
Founder & Managing Director at Richard Jennings Mortgage Services
This is another great example of how building societies are leading the way versus their big six rivals. Flexibility, a willingness to lend and an approach to underwriting that adds an element of the human factor. Leeds Building Society are already well known for the flexible approach but by launching reach they may just have joined Digital Mortgages by Atom in offering an alternative when the computer says no. This will greatly benefit those first time buyers who may have limited to no credit history through no fault of their own. A low score no longer needs to mean no mortgage. With the reach range clients will be able to obtain a mortgage, with a low credit score at a rate that is competitive.
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Robert Timm
Managing Director at Sunland Mortgages
Any lender who is willing to adapt policy to allow more clients to obtain a mortgage has to be seen as a good thing.

Whilst Leeds Building Society aren’t the first (Digital Mortgages and Accord both have similar type products available) the difference in rates between their mainstream range and their Reach range seems minimal, which is good to see.
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Amit Patel
Adviser at Trinity Finance
Great to see Leeds attempting to help borrowers with a less than imperfect credit score but the devil will be in the actual detail. As brokers we need clarity on the criteria for the 'reach' product so we can determine whether the application will be accepted by the lender at full mortgage application.
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Austyn Johnson
Founder at Mortgages For Actors
Any help to FTB's is welcomed. I hope that all aspects will be explored though and not just everyone thrown into there. Full research, full job. Good to see the innovation though.
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Akhil Mair
Director at Our Mortgage Broker
Absolutely thrilled about the launch of "Our Reach Mortgages" by Leeds Building Society. This innovative initiative not only makes home ownership more achievable but also demonstrates a commitment to breaking down barriers in the housing market. Kudos to Leeds Building Society for paving the way towards a more inclusive and accessible future for aspiring homeowners.
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Rhys Schofield
Brand Director at Peak Mortgages and Protection
A great idea but just a bit short on concrete facts. What clients do Leeds want us to put in front of them? What sort of business will go through with Reach that can't otherwise be placed. At this point I just don't quite get it.