Leeds BS launch cheaper fixed rate mortgage range

Leeds Building Society has unveiled a new five-year fixed rate mortgage available to those with just 20 per cent equity at a rate of 3.95 per cent.

The product comes with no higher lending charge and allows ten per cent capital repayments each year without penalty.

The new release follows a number of other cheaper five-year fixed rate mortgage deals launched by HSBC, NatWest, Santander and others since the Bank of England launched its Funding for Lending scheme last month.

However, most of these deals have only been available to homeowners with a deposit of 40 per cent.

The new Leeds BS product allows a wider range of homeowners and first-time buyers to secure a longer term fixed rate mortgage at cheaper rates.

Leeds BS has also launched new products for borrowers with even lower loan-to-value (LTV). It has a five-year fixed rate deal at 4.49 per cent for those with a 15 per cent deposit and also a deal at 5.99 per cent for homeowners or first-time buyers with just five per cent equity.

Additionally, Leeds BS has announced the launch of a three-year fixed rate deal available to those with 1 75 per cent LTV at just 3.25 per cent and a 3.89 per cent deal for those with an 85 per cent LTV.

A further “fees assisted” mortgage at 3.75 per cent for those with an LTV of 75 per cent has been launched, alongside one at 4.39 per cent up to 85 per cent LTV. Both products offer free standard valuations and free in-house legal services for standard re-mortgages, together with reduced fees.

Kim Rebecchi, Leeds Building Society’s Sales and Marketing Director said: “Our new mortgage range, which includes a market leading 5 year deal, offers a fantastic opportunity for those customers who wish to lock into the certainty of low fixed repayments. This is combined with the flexibility of 10% capital repayments each year at a very affordable rate.

“We have also launched a market leading fees assisted 3 year fixed rate, which is suitable for those customers who may require help with upfront costs.”