Back to October 2018

Leeds launches two year discount mortgages from 0.99%

Discount mortgages starting at 0.99% have been added to Leeds Building Society’s variable rate residential range.

The Society has extended its choice of discounted deals by adding two year products with a combination of incentives.

Highlights include:

  • 0.99% two year discount mortgage available up to 65% LTV (loan to value) with £1,999 fee
  • 1.47% two year discount mortgage up to 65% LTV with no fee
  • 1.79% two year discount mortgage up to 85% LTV 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.”

Ends

Notes to Editors

*For illustrative purposes: borrowing £300,000 on the 0.99% two year discount mortgage, if there were two BBR increases each of 0.25% in August 2019 and 2020, repayments would have totalled £1,125 less, compared to the same sized loan on a 1.39% two year fixed rate mortgage.

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 2018 What Mortgage Awards, its third consecutive year of success in this category.

Leeds Building Society operates throughout the UK and in Gibraltar and has assets of £19.5bn at 30 June (£17.3bn at 30 June 2017). The Society’s head office has been based in the centre of Leeds since 1886.

Key features

0.99% Legal Assisted 2 Year Fixed Rate Discount mortgage

  • 4.70% discount for first two years, 1% discount on SVR for subsequent three years
  • Available up to 65% LTV
  • Free standard valuation
  • Fees assisted legal services on standard remortgages
  • £1,999 fee
  • 10% penalty free capital over-repayments permitted each year
  • Available for purchase and remortgage

1.47% Legal Assisted 2 Year Fixed Rate Discount mortgage

  • 4.22% discount for first two years, 1% discount on SVR for subsequent three years
  • Available up to 65% LTV
  • Free standard valuation
  • Fees assisted legal services on standard remortgages
  • No fee
  • 10% penalty free capital over-repayments permitted each year
  • Available for purchase and remortgage

1.79% Legal Assisted 2 Year Fixed Rate Discount mortgage

  • 3.90% discount for first two years, 1% discount on SVR for subsequent three years
  • Available up to 85% LTV
  • Free standard valuation and fees assisted legal services
  • Fees assisted legal services on standard remortgages
  • No fee
  • 10% penalty free capital over-repayments permitted each year
  • Available for purchase and remortgage