Launch Pad: Mortgages

The cashback incentive is available on its two-, three- and five-year fixed-rate Welcome mortgage products.

Key Features:

- Available for up to 85 per cent loan-to-value

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- The mortgages allow for 0 per cent payment on the first three or six months of their mortgage

- The remaining monthly payments at a fixed rate, of 4.32 per cent to 4.07 per cent.

- No completion fee

- Free standard valuation available up to £335

- 10% capital repayments allowed each year without penalty

Martin Richardson, general manager of business development for Leeds Building Society, said: “Customers can choose a 0 per cent interest rate period and pay capital only, for either three or six months. This reduces their outgoings immediately after they move in and gives borrowers the opportunity to decorate, make improvements or buy furniture for their new home.

“They then pay a fixed monthly payment for the remainder of the product period at a competitive and affordable rate, creating flexibility and certainty at the same time.”

Adviser View:

Jaskarn Pawar, director of Northampton-based Investor Profile, said: “The cashback amount is hardly life-changing, and seems gimmicky, while the 0 per cent payment option for the first three or six months looks like a straight marketing tactic as well without any real benefit.

“The fact is that if you use it to buy furniture or whatever then that will be added to your mortgage for how ever many years that is, so effectively you would be taking a long-term fixed rate loan to finance goods with a much shorter duration, which is obviously not a very good idea.”