Leeds Building Society has launched a ten-year fixed rate mortgage that charges just 4.58 per cent for homeowners who have a loan-to-value (LTV) ratio of 75 per cent.
For homeowners who have a slightly smaller deposit of just 20 per cent, the deal is still open but at a slightly higher interest rate of 4.79 per cent.
The deal is an unusual one, but if you want to know exactly what you will be paying for every one of the next 120 months and do not like the hassle of sorting out a new mortgage semi-regularly, and you meet the qualifying criteria, it could be a good option.
The total fees are £999 and capital repayments of up to ten per cent each year can be made without penalty.
Kim Rebecchi, Sales & Marketing Director at Leeds Building Society said, “With 10-year market rates at historically low levels, we are able to offer these long-term market leading fixed rate mortgages from only 4.58%.
“The products are available for both purchases and remortgages and customers can lock-in value for a decade which, in the current economic environment, delivers security and peace of mind at a very low rate.
“Furthermore, there is no higher lending charge and customers can pay off 10% of capital each year, without penalty. The mortgages are also fully portable should a borrower wish to move home during the term, providing even greater flexibility.
“I believe these mortgages offer excellent value and will prove extremely popular with customers.”