Leeds cuts mortgage rates

Thursday, 21 August 2008 12:00 AM

Following yesterday's wave of mortgage lenders announcing cuts in fixed-rate mortgage costs, Leeds Building Society has become the latest to slash rates.

The Yorkshire based lender confirmed it is to cut up to 0.50 per cent off its fixed-rate mortgage range on both fee-paying and fee-free options.

As a result the lender - which is the seventh biggest in the UK, with over 650,000 customers - will now offer a two-year fixed-rate deal for a rate of 5.25 per cent.

The deal also comes with a three per cent fee and a maximum 80 per cent loan-to-value (LTV) ratio.

There is also a three-year fixed-rate option available, beginning at 5.99 per cent at 80 per cent LTV; rising to 6.49 per cent up to 90 per cent LTV.

There is a £999 completion fee up to £500,000, and over £500,000 the fee will be one per cent of the loan amount.

The new range of three-year products provide customers with a choice between a smaller fee, or larger fee options for those who wish to keep payments low, explains the society.

"We have cut rates across our fixed rate mortgage range and this new suite of products deliver outstanding value to both new and existing customers," said Karen Wint, general manager marketing at the society.

"There are currently many reports in the media saying the best mortgage deals are only available to those with large deposits; however, we are offering very competitive deals to those with only a ten per cent deposit."

There is no higher lending charge on any of the new two or three-year products.

A number of the deals also provide a free valuation up to £335 and allow ten per cent capital repayments each year, without penalty.

All fee-free versions also benefit from free in-house legal services for remortgages and no higher lending charge.

The products are also fully portable, so customers can move during the term, taking their mortgage with them.

The news follows announcements yesterday from Royal Bank of Scotland, Abbey, Yorkshire Building Society, Mansfield Building Society, and Britannia Building Society - all of which are also cutting mortgage rates.

Chris O'Toole

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