New sub-1% mortgage deal launched by Leeds Building Society
Leeds Building Society has launched a new range of two-year discount mortgages, starting from 0.99%.
The mortgages are an extension to the lender’s existing discounted rate deals and offer a combination of incentives.
The range now includes a 0.99% two-year discount mortgage available up to 65% of the property’s value with £1,999 fee. Borrowers looking for a fee-free options can choose a 1.47% two-year discount mortgage up to 65% loan to value with no fee.
For those with a more modest deposit there is a 1.79% two-year discount mortgage up to 85% of the property’s value with no fee.
After the end of the two-year term each has a 1% discount for a further three years.
“We’ve added a new tier of two year products to our discount mortgage range to offer borrowers more choice,” said Matt Bartle, Leeds Building Society’s head of product and pricing.
“Fixed rate remains the most popular type of mortgage by some margin, both among our customers and in the UK generally, but there’s a trade-off. The interest rate and monthly repayments may be a little higher than if the borrower had chosen a variable rate but they have the security of fixed repayments which can help them to budget.
“However, borrowers who aren’t expecting rate increases in the near future could choose a variable rate product with lower repayments*, which is why we’re introducing these shorter-term discount mortgages.
“While we’re now in a rising rate environment, the indication from the Bank of England is that Base Rate increases will continue to be small and gradual, in recognition that rates have been at historically low levels for the past decade.
“We’ve included some fee-free products which are likely to appeal to homeowners seeking to minimise the costs of remortgaging to a new deal while rates remain low.”