Leeds launches 5-year tracker with no early repayment charge

Leeds launches 5-year tracker with no early repayment charge

Leeds has boosted its buy-to-let (BTL) range with a five-year tracker mortgage that has no early redemption charges (ERCs).

The product has a rate of 1.65 per cent up to 60 per cent loan to value (LTV), and comes with a free valuation and fees-assisted legal services for standard remortgages.

Available for purchase or remortgage, the loan also comes with a £1,999 completion fee.

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The building society has also cut rates across its range of 60 per cent LTV BTL mortgages by up to 0.1 percentage point, with highlights including a remortgage-only five-year fix at 2.39 per cent, which comes with free valuation, fees-assisted legal services and a £999 fee.

Jaedon Green, director of product and distribution, said: “We’re seeing more customers moving towards longer-term products, with five-year deals the most popular.

“Our five-year tracker comes with no ERCs, so the borrower has no penalty charges if they decide to redeem their mortgage within the term, for example if they sell their property.

“This flexibility is useful to landlords, who may be reviewing their portfolios as the new BTL tax legislation eases in.”

Rebecca Robertson, director and financial planner at Chatham-based Evolution for Women, said: “That is really good for clients who do not quite know what they want in the next few years. They might have a loan finishing or an inheritance or a bonus from work so they can overpay.

“It is a good product, but the market is so unstable with Brexit and the election that most clients would be more likely to do a fixed rate.”