Leeds & Holbeck Building Society is cutting its 5-year fixed rate shared ownership mortgage to 4.99 per cent.
It has no higher lending charge and customers can borrow up to 100 per cent of their share.
The product is available immediately, while Leeds & Holbeck will become Leeds Building Society on September 12.
The 4.99 rate is available until December 1, 2010 and is available up to 75 per cent LTV.
Leeds & Holbeck corporate relationship manager says: “We have slashed our 5-year fixed rate shared ownership by 0.80 per cent to offer this product. The reduction means that, on an average loan of 61,000, a customer will save 488 a year on an interest only mortgage.”