Mortgages

Any of the mortgage types detailed below can be linked to a choice of repayment options. At Leeds Building Society we will never ‘sell’ you a certain type of mortgage – we’ll simply help you decide which one is right for you.

About you

You will need to be aged 18 or over to be eligible for a mortgage. We will undertake a full appraisal of your financial status before granting a mortgage to you.

A wide choice of mortgages for all

Our range of traditional mortgages combine attractive interest rates with the simplicity of managing your mortgage with regular repayments. New mortgages are available on a regular basis giving you the option to choose a fixed or discounted rate, with many of these being offered as flexible mortgages.

Fixed Rate Mortgages

Fixed rate mortgages offer peace of mind so that whatever happens to interest rates, your repayments won’t be affected during the period that your rate is fixed.

Here’s how they work:

Depending on availability, rates can be fixed from between 2 and 25 years, after which your mortgage switches to our Standard Variable Rate. As the name suggests, they allow you to fix the rate of interest you will pay on your mortgage for an agreed period.

What are the benefits?

• Protected against rising interest rates
• The interest rate you are charged is guaranteed to remain the same for the
  duration of your initial deal period
• Peace of mind, as you know exactly how much you will be paying each month. This in turn can help you with your budgeting.

Discounted mortgages

Our discount mortgages give you a discount off our Standard Variable Rate for a fixed period of time.

Here’s how they work:

The discount rate may still go up or down in this time, but will always remain at a lower level than our Standard Variable Rate. At the end of the discounted period, your mortgage switches to our Standard Variable Rate.

What are the benefits?

• Discount mortgages offer the possibility of benefiting from falling interest rates
• The lower monthly repayments cover a period when you may need a little extra cash, especially if you’ve just moved into a new home.

Flexible mortgages

Flexible mortgages put you in charge of your finances. You can make additional payments at any time without incurring any Early Repayment Charges, allowing you to pay off your mortgage early and potentially save many thousands of pounds in interest payments.

Here’s how they work:

With a flexible mortgage, interest is calculated daily. So, you can make a one-off capital payment to reduce the amount you pay each month, or continue with your existing payments and reduce the term of your mortgage. You can also make underpayments, borrow back or take ‘payment holidays’ against any overpayments you have made - useful if you are planning a career break or starting a family.

What are the benefits?

Over-payments on your flexible mortgage allow you to choose any of the following options:

• Reduce the term of your mortgage
• Reduce the amount you pay each month
• Take up to 6 months payment holidays each year
• Borrow back the amount over-paid

Extra help for First Time Buyers

We know that when you’re buying your first home you need all the help you can get. At Leeds Building Society we always make every effort to make things as easy as possible which is why we offer these special types of mortgages. It’s tough getting your first home. Private rents may be too high for you and you may not have enough money available to get on the property ladder.

Guarantor mortgages

Having a guarantor, either a parent or a relative, enables you to borrow more money than your income would usually allow, because your guarantor’s income (less any other financial commitments) is taken into account. With a guarantor mortgage, either a parent or a relative agrees to guarantee your mortgage in the event that you fail to make the mortgage repayments. Once you are comfortable with the idea of meeting the repayments yourself, without a safety net, you can apply to have the guarantor released from the agreement.

Shared Ownership

Shared ownership enables you to take the first steps to owning your own home. The schemes are run by registered Housing Associations. You buy a share of the property - using a mortgage and pay rent to the Housing Association on the part you don’t own. You can buy between 25% and 75% of the property - the higher the share, the lower the rent. When you can afford to, you can buy further shares in your home and eventually own it outright.

Right to buy

If you are a council tenant looking to buy your first home we offer a range of fixed and variable rate mortgage products. Most Council tenants have the ‘Right to Buy’ their home from their Local Authority, a non-charitable Housing Association or a housing action trust at a discounted price. You’ll probably be entitled to buy your home if you have been a Council tenant for two years or more. You’ll be entitled to a discount depending on the length of time you have been a public sector tenant.

For more details contact your Local Authority.

Shared Equity schemes

- in England and Wales

Shared equity is where the borrower only pays a percentage of the full open market purchase price of the property but acquires ownership of 100% of the property with the balance of the purchase monies being provided by an equity sharing lender (often the seller, which is usually the developer). The schemes are primarily designed to help first-time buyers who wish to become homeowners but cannot afford to pay the full price for a house. The Society offers specific products for those who are buying their home with the help of a shared equity scheme and your legal advisor will need to confirm that the Society’s Shared Equity scheme requirements are met when you apply.

LIFT (formerly Homestake)

- a shared equity scheme operating in Scotland

LIFT is a shared equity scheme available in Scotland aimed at helping people on low incomes who wish to become homeowners but cannot afford to pay the full price for a house. The Society offers specific products for those who are buying their home through the LIFT scheme and your legal advisor will need to confirm that the Society’s LIFT scheme requirements are met when you apply.

How long your mortgage will run

We normally lend for up to 25 years but you can choose a shorter or longer period. You should bear in mind that an Early Repayment Charge may be payable depending upon the particular product if you choose to pay off your mortgage or remortgage before the end of any Early Repayment Period (these terms are explained in the ‘Jargon Buster’ section of this guide). If you think you may be able to pay off your mortgage early, but don’t know for certain, you might like to consider our Flexible Mortgage. Some of our other products may also allow you to do this – please ask your Mortgage Advisor.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.