Back to December 2018

More borrowers choosing three year fixed rate mortgages, says Leeds

Brexit uncertainty may be encouraging borrowers to consider fixing their mortgage for longer, says Leeds Building Society.

The Society has seen increased demand in recent weeks for three year fixes over two year deals, although that term has remained the most popular overall.

In response the Society has added to its range of fixed rate mortgages with a new three year product at 1.79%, available up to 75% LTV (loan to value).

The deal comes with incentives including a free valuation, and fees assisted legal services on standard remortgages.

“There’s been a definite spike in interest late this year in three year fixed rate mortgages, particularly for remortgages,” said Jaedon Green, Leeds Building Society’s Director of Product and Distribution.

“Two year fixed rates are traditionally the most popular mortgage on the market, as the fixed rate gives security but the commitment isn’t too long.

“The ongoing economic uncertainty because of Brexit may be making more borrowers look for some longer-term security and three years is a useful compromise if they feel five years ties them too far into the future.”

The Society has also launched a new high LTV two year fixed rate mortgage this week – at 3.24% up to 95% LTV with no product fee.

Ends

Notes to Editors

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

1.79% Legal Assisted 3 Year Fixed Rate mortgage until 30 April 2022

  • 1.79% fixed until 30 April 2022
  • Available up to 75% LTV
  • Free standard valuation
  • Fees assisted legal services for standard remortgages
  • £999 fee
  • 10% penalty free capital over-repayments permitted each year
  • Tapered ERCs 4%/3%/2%
  • Available for purchase and remortgage

3.24% Purchase Only 2 Year Fixed Rate mortgage until 31 March 2021

  • 3.24% fixed until 31 March 2021
  • Available up to 95% LTV
  • Free standard valuation
  • No product fee
  • 10% penalty free capital over-repayments permitted each year
  • Tapered ERCs 3%/2%
  • Available for purchase only