Leeds Building Society has launched a trio of new five-year fixed-term mortgages at 65, 75 and 80 per cent loan-to-value.
The company, which has assets of an estimated £12.1bn, will offer borrowers fixed-rate mortgages over five years at 2.59 per cent, 2.84 per cent and 2.94 per cent up to 65 per cent, 75 per cent and 80 per cent LTV respectively.
All products incur a £1,999 fee but come with a free standard valuation of up to £335, no higher lending charge and allow 10 per cent capital repayments each year without penalty.
Leeds Building Society, which has operated from Leeds since 1886 and runs 67 branches throughout the UK, Gibraltar and Ireland, has also announced cuts in rates on its range of two- and five-year fixed-rate mortgages earlier this month.
From 6 November, the society reduced the five-year fixed-rate mortgage from 3.09 to 2.89 per cent up to 75 per cent LTV, and from 3.34 to 2.99 per cent up to 80 per cent LTV.
The firm also offered a competitive fee-assisted fixed-rate mortgage over five years up to 80 per cent LTV, reduced from 3.44 to 3.09 per cent.
Two-year fixed-rate mortgages also fell from 2.39 to 2.24 per cent up to 75 per cent LTV, and from 2.59 to 2.39 per cent up to 80 per cent LTV.
Similarly, the society offered a competitive fee-assisted two-year fixed-rate mortgage up to 80 per cent LTV, reduced from 2.69 to 2.44 per cent.
Both include a free standard valuation up to £335 and fee-assisted legal services for standard remortgages.
Providers view:
Martin Richardson, general manager business development at Leeds Building Society, said: “We expect these new five-year deals to appeal to home buyers with a larger deposit or homeowners with at least 20 per cent equity in their property.
“Now could be an ideal time for borrowers to lock into a competitive deal – this time of year is traditionally peak season for remortgaging, and it’s worth homeowners reviewing whether switching to a more competitive deal while rates are low could bring down their monthly repayments or shorten their mortgage term, and provide them with longer-term security of payment over the next five years.”
Advisers view:
David Hollingworth (pictured), associate director at Bath-based London & Country Mortgages, said: “The 2.59 per cent figure is especially eye-catching. I believe Accord withdrew its product at the same rate. Virgin Money also has the same rate, but for its remortgage product.
“It is a signal of intent. The company is pricing competitively and obviously keen to make it in the market. We have a competitive market. What consumers are getting are very low rates and plenty of choices and it shows there is a price war, which is good news for borrowers.
“However, borrowers need to beware of the almost £2,000 fee attached to the offer and choose a deal which suits their current circumstances.”
Charges: All products incur a £1,999 fee. Tapered early redemption charges of 5/5/4/3/2 per cent of the amount redeemed.
Verdict
The trio of offerings receives an overall thumbs up. The addition of more financial products in the already saturated fixed-term mortgages market can only be good news for borrowers in search of bargain deals. However, they need to be sure that the £1,999 fee applicable to the products is manageable and suits their current circumstances.
