Want to pay 0% interest on your mortgage for three months?
Leeds Building Society has updated its range of Welcome Mortgages, which feature a temporary 0% interest rate at the start of the loan.
The mutual introduced the unique mortgage in 2013 as a way to help property purchasers keep down their initial costs at a time when their finances might be stretched.
Welcome Mortgages are fixed rate deals which give borrowers three months at the start of their term where they pay 0% interest. The total cost to borrowers is comparable to the Society’s equivalent fixed rate mortgages.
The relaunched current range includes a fee-free 2.64% five-year fixed rate Welcome Mortgage with three months 0%, available up to 85% of the property’s value.
There is also a fee-free 3.70% five year deal up to 90% LTV, with the first three months at 0%.
“It almost exactly five years since we launched the Welcome Mortgage and we’re delighted it’s been so well-received by borrowers,” said Jaedon Green, Leeds Building Society’s director of product and distribution.
“We created Welcome Mortgage because moving home is a difficult process to budget for. The majority of people underestimate the costs involved.
“Welcome provides a breathing space of three months to help homebuyers navigate the challenges of moving home, whether coping with unexpected costs, emergency DIY or simply keeping finances under control, while they adjust to the running costs of the new home.”