The mortgage is available up to 75 per cent loan-to-value and comes with additional benefits, including a free standard valuation up to £335 and free in-house legal services for remortgages.
The society has also cut rates on some of its two-year fixed rate deals by up to 0.25 per cent, and added benefits such as a free standard valuation, as well as introducing a new two-year fixed rate mortgage at 65 per cent LTV.
For two-year fixed rate mortgages up to 85 per cent LTV, rates are available at 2.99 per cent, with a £999 fee, and 3.29 per cent, with a £199 fee and a free standard valuation up to £335.
The newly introduced two-year fixed rate mortgage with 65 per cent LTV has a rate of 2.59 per cent with a £199 fee, free standard valuation up to £335 and free in-house legal services for remortgages.
Other deals included an 80 per cent LTV two-year fixed rate mortgage at 2.74 per cent, and a two-year fixed rate 75 per cent LTV mortgage at 2.59 per cent. Both of these products came with a £999 fee and a free standard valuation up to £335.
Martin Richardson, Leeds Building Society’s general manager – business development, said: “Short-term fixed rates are our most popular mortgages by far and we’ve reviewed our range of competitive two-year deals to offer borrowers an additional range of benefits, including low fees, free valuations and free legal services.”
REACTIONS
PROVIDER VIEW
Mr Richardson added: “We anticipate the new two-year base rate tracker mortgage will appeal to borrowers who expect the base rate to stay at its historic low for some time longer, or to move very slowly should it start to rise in the immediate future. We’ve reduced rates where we’ve been able to and introduced a new 65 per cent LTV product for remortgagers, who have more equity in their property or homebuyers with a larger deposit to put down.”
ADVISER VIEW
Andrew Swallow, partner of London-based Swallow Financial Planning, said: “The Leeds offer does indeed look reasonable, however I do wish lenders would stop dressing up ‘free’ items when they are in fact all catered for within the package. Clearly the rates as published mean buyers have to do the calculations – depending upon the size of the loan – to work out what is best in their circumstances. Is it worth fixing for two years? Variable rates will still probably work out better for most, however for those on tight budgets who want security, then it is probably better to look for a five-year fix rather than a two-year fix.”
CHARGES
There is a £1,499 charge for the two-year base rate tracker mortgage and a £199 fee for the two-year fixed rate mortgage at 65 per cent LTV.
VERDICT
The mortgage rates are very competitive in the market, even for the high LTV ranges, and come with an additional range of benefits including low fees, free valuations and free legal services, which are options that are bound to be popular. The mortgage tracker will be suitable for clients who forecast the base rate to remain low. However, clients on tight budgets would probably be better advised to look for a long-term fixed rate.
