Leeds Building Society has cut the rates on its fixed mortgages by up to 0.3 per cent, offering a five-year fix to first-time buyers at less than 2 per cent.
As well as a 1.99 per cent five-year fixed rate available up to 90 per cent loan-to-value (LTV) with a fee of £999, the company is offering a 2.24 per cent fee saver five-year fixed rate available up to 85 per cent LTV.
The reductions include a cut of 0.30 per cent on all fixed rate deals in the society’s Holiday Let mortgage range.
These come with a combination of fees, including no fee, as well as legal and valuation incentives.
Jaedon Green, Leeds Building Society's director of product and distribution, said borrowers have benefited from many years of historically low rates but we are now in a rising rate environment and they may want to lock-in to give themselves security on their monthly repayments.
He said: "A lot of people start the New Year by reviewing their financial commitments, or deciding to move, and the ongoing economic uncertainty gives homebuyers and remortgagers an extra incentive to lock into a fixed rate now for the longer term."
Kevin Dunn, mortgage and protection adviser at Leicestershire-based Furnley House, said the product was competitive at that rate.
He said: "I would, of course, make sure anyone taking that rate was not going to consider moving within five years."
The 1.99 per cent mortgage offers tapered early repayment charges.
