Back to May 2018

Initial 0% interest rate gives homebuyers Welcome break

Leeds Building Society has refreshed its range of award-winning Welcome Mortgages, which come with a 0% interest rate at the start of the loan.

The Society launched the unique mortgage in 2013 and won industry awards and commentator praise for its innovation in finding a different way to help property purchasers keep down their initial costs at a time when their finances might be stretched.

Welcome Mortgages are fixed rate and 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*.

Highlights from the relaunched current range include:

  • Fee saver 2.64% five year fixed rate Welcome Mortgage with three months 0%, available up to 85% LTV (loan to value)
  • Fee saver 3.70% five year fixed rate Welcome Mortgage with three months 0%, available up to 90% LTV

Added incentives include a free standard valuation and no product fee.

“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.”

The Society is well-known for its products and expertise in the affordable housing sector, helping borrowers who are not well-served by the wider market.

As well as traditional higher LTV mortgages and the Welcome Mortgage, Leeds Building Society also lends on Shared Ownership properties and through the Government’s Help to Buy equity scheme.

Ends

Notes to Editors

Welcome Mortgage Fee Saver 3 months 0% then 2.64% until 31st July 2023

  • 0% for first three months
  • Then 2.64% fixed up to and including 31st July 2023
  • Available up to 85% LTV
  • Free standard valuation up to £999
  • Up to 10% capital overpayment allowed penalty-free each year
  • Tapered early repayment charges (5/5/4/3/2%)
  • For purchase only

Welcome Mortgage Fee Saver 3 months 0% then 3.70% until 31st July 2023

  • 0% for first three months
  • Then 3.70% fixed up to and including 31st July 2023
  • Available up to 90% LTV
  • Free standard valuation up to £999
  • Up to 10% capital overpayment allowed penalty-free each year
  • Tapered early repayment charges (5/5/4/3/2%)
  • For purchase only

*For illustration purposes

To discuss a new case with one of our mortgage development team, mortgage introducers should go to www.leedsintroducer.co.uk to find details of their nearest Business Developer contact.

Leeds Building Society won the title of Best Shared Ownership Mortgage Lender in the 2017 What Mortgage Awards, its second consecutive year of success in this category.

Leeds Building Society operates throughout the UK, Gibraltar and Ireland and has assets of £18.5bn at 31st December 2017 (£15.9bn at 31st December 2016). The Society’s head office has been based in the centre of Leeds since 1886.