Mortgages  

Launch Pad: Mortgages

Leeds Building Society has launched a two-year base-rate tracker mortgage at a rate of 2.39 per cent. The deal tracks the Bank of England rate plus 1.89 percentage points until December 31 2015 and is available for applications with a loan-to-value of up to 75 per cent.

The offer allows 10 per cent capital repayments every year without penalty and has no higher lending charge.

Applicants can also benefit from a free standard valuation up to £335 and free in-house legal services for standard remortgages.

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Key features

• No higher lending charge.

• £199 booking fee.

• £400 completion fee up to £500,000 reverting to 1 per cent on loans more than £500,000.

• Tapered early repayment charges of 3 per cent of the amount redeemed in year one, and 2 per cent in year two.

• Maximum loan of £750,000

Phil Coombes, head of intermediary sales for Leeds, said: “The forward guidance policy issued by the Bank of England states that the base rate will not rise until unemployment falls below 7 per cent. The two-year base-rate tracker mortgage therefore offers excellent value immediately and in the future. The product is also fully portable so if clients move home they can take it with them.”

IFA Verdict

Oliver Whitehead, managing director of London-based mortgage intermediary Oportfolio, said: “The rate is all right but the likes of Virgin Money, Nationwide and Skipton are offering lower deals. I do not use Leeds very often as, in my experience, its application process is much slower than its competitors.”