Fixed Rate 

Leeds adds no-fee deals to fixed rate range

Leeds adds no-fee deals to fixed rate range

Leeds Building Society has added no-fee and cashback deals to its fixed-rate mortgage range.

The group has added two fixed-rate mortgages, each with a term of two years.

For borrowers wanting up to 60 per cent loan-to-value (LTV), the two-year fix has an interest rate of 1.88 per cent and £500 cashback.

For those needing up to 75 per cent LTV, the group is offering a 1.94 per cent product, also with £500 cashback.

The building society said the move comes in response to feedback from intermediaries.

"The majority of borrowers choose fixed rates, which offer certainty over repayments," said Jaedon Green, Leeds Building Society’s director of product and distribution.

"Mark Carney’s hints last week that the Base Rate is likely to increase sooner and more quickly than previously forecast may prompt homeowners to review their existing mortgage.

"While the latest additions to our fixed rate range are available for purchase and remortgage, the fact they come with cashback and no product fee is an extra incentive for remortgagers looking to switch and fix while rates remain low, while cashback will help reduce the impact of unexpected costs experienced by most home movers."

It also has a 2.19 per cent five-year fix offering £1,000 cashback, up to 60 per cent LTV, and a 2.24 per cent five-year fix with £1,000 cashback up to 75 per cent LTV.

All deals include a free standard valuation and no product fee.

David Hollingworth, associate director at mortgage adviser London & Country, said the new deals might appeal to those trying to reduce the cost of a move or remortgage.

He said: "Leeds Building Society is obviously aiming at that market for keeping costs down, there is no product fee, and the cashback could be used towards switching and legal fees."

He added Nationwide and Sainsbury’s Bank are among providers that have also been successful in offering cashback incentive deals.

"It is very competitive across the whole market, it doesn’t matter whether you are looking at bigger fees on lower rates or something that helps with cost," he said. "The five-year fix is quite interesting. You have to factor in the rate – it is not the lowest on the market but the cashback coupled with no fee could really start to stack up as a good deal to keep costs down."