Leeds Building Society has introduced two five-year deals with £1,000 cashback to their mortgage range.
The new additions featuring the cashback incentive are offered at rates of 2.64 per cent up to 85 per cent loan-to-value (LTV) and 3.09 per cent up to 90 per cent LTV, in addition to free standard valuation and no product fee.
Jaedon Green, director of product and distribution at Leeds Building Society, said: "Our mission as a business is to help people to have the home they want and we understand that everyone's individual circumstances are different.
“Of course, it is your choice how to spend the cashback – whether that is to cover removal fees or put towards stamp duty, or treat yourself with a holiday or tickets to the World Cup or the Wimbledon final.”
Mr Green said the incentive packages should give borrowers plenty of choice not only on the rate and term of their mortgage but also with the costs of moving home or remortgaging.
Leeds Building Society has also introduced other five-year fixed rate mortgages at 1.94 per cent available up to 75 per cent LTV and 2.04 per cent available up to 80 per cent LTV, both with free standard valuation and a £999 fee.
Mark Harris, chief executive of mortgage broker SPF Private Clients, warned that borrowers must be careful when comparing mortgage deals with cashback incentives.
He said: “Cashback is great and can serve a purpose but can be a little confusing to the borrower. Actually, if you have a better rate with no cash back it can sometimes be a better deal.
“The incentives need to be stripped back to end up with an accurate comparison of deals.”
rachel.addison@ft.com
