The product also comes with no higher lending charge, and 10 per cent capital repayments are allowed each year without penalty.
However, there are early repayment charges of 3 per cent of the amount redeemed in the first year of the mortgage, and two per cent of the amount redeemed in the second year.
For more information, prospective customers can call the Society’s mortgage hotline on 08450 540 994, where qualified mortgage advisers are available seven days a week from 8am to 8pm.
Alternatively, customers can call into their local branch or apply online at www.leedsbuildingsociety.co.uk.
Leeds Building Society has assets of £10.8bn (as at 30 June 2013) and 67 branches throughout the UK, Gibraltar and Ireland. The Society has operated from the centre of Leeds since 1886.
Kim Rebecchi, pictured, Leeds Building Society’s sales and marketing director, said: “We are very pleased to be able to offer a sub-2 per cent fixed rate, which presents a fantastic opportunity for those borrowers looking to lock into the certainty of low fixed repayments. Therefore, existing borrowers who are coming to the end of their current deal may welcome the ability to budget, and limit their monthly outgoings, at a very affordable rate.”
Paul Good, senior adviser for Stockton-on-Tees-based IFA Joslin Rhodes, said: “This is the sort of deal designed for comparison sites like moneysupermarket.com, since it will come near the top of any search based on low interest rates or low initial booking fees. People won’t look at the completion fee, which is clearly the sting in the tail with this deal.”
There is no higher lending charge, but there are tapered early repayment charges of 3 per cent of the amount redeemed in year one and 2 per cent of the amount redeemed in year two. There is a £199 booking fee and a completion fee of £1,800 up to £500,000 or 1 per cent over £500,000. The maximum loan is £750,000.
This mortgage may initially appear appealing to the average homebuyer, but the completion fee is quite steep. Therefore, potential buyers need to take account of all the costs involved in taking out this mortgage.