“We have decided to start strong in 2024 by making reductions on rates across our mortgage product range to support more people onto and up the property ladder.”
– Matt Bartle, director of products at Leeds Building Society
Leeds Building Society has announced a series of rate reductions within its array of mortgage products aimed at assisting both first-time purchasers and existing homeowners seeking to refinance their mortgages.
The revised rates feature a notable two-year fixed-rate mortgage with a loan-to-value (LTV) ratio of 75%, now offered at a reduced interest rate of 4.60%. This rate is succeeded by a discount of 0.75% from the standard variable rate (SVR), which currently stands at 7.49%, applicable until the 31st of March, 2029. Additionally, there is a decrease in the two-year fixed-rate mortgage at 95% LTV to 5.59%, followed by a 0.75% discount from the SVR until March 2029; this product is exclusively for purchases. Both of these options include a completion fee of £999.
Furthermore, the Society has reduced the interest rate on a shared ownership five-year fixed-rate mortgage available up to a 95% borrower share to 5.59%, with the benefit of no completion fee.
Moreover, Leeds Building Society offers a two-year fixed-rate buy-to-let mortgage without any fee at 60% LTV, now at 5.55%, followed by a 1.00% discount from Skipton’s buy-to-let variable rate (current rate 7.54%) valid through to the conclusion of March 2029.
The expiration dates for these products have been extended to align with the end of March in the corresponding year. These offerings also include advantageous features such as complimentary standard property valuations, fees-assisted legal services for remortgaging within the organization, and the ability to make annual capital repayments up to 10% without incurring penalties.
The Society estimates that an average customer could realize monthly savings of approximately £300 with these enhanced rates.
Current data from CACI indicates that the average interest rate for maturing mortgages is 2.04%, with the average residential reversionary rate being 7.73%. Consequently, a customer holding a £155,000 mortgage over a 25-year term, presently paying £659.58 per month, would face an increased payment of £1,167.56 if they remained on the reversionary rate. By transferring to the Leeds Building Society’s 75% LTV product, which carries a £999 fee and has an interest rate of 4.60%, the monthly
