Back to January 2020

No-fee fixed rate mortgages could save borrowers almost £150 a month

Borrowers with mortgages maturing in April 2020 could save almost £150 on their monthly mortgage payments by remortgaging in the New Year.

Industry data* shows £184bn of mortgages will mature in 2020, with 139,935 maturing in April accounting for £20.9bn – the second largest single month of maturities across the next 12 months.

On average, borrowers with a mortgage maturity in April 2020 have an outstanding balance of £149,736 and almost 19 years left on their term.

Leeds Building Society’s has launched new no-fee two and three year fixed rate deals, available up to 75% LTV (loan to value), which could save borrowers significant sums when compared with the market average reversion rate.

Matt Bartle, Director of Products at Leeds Building Society, said: “Mortgage rates have reduced significantly over recent years so many borrowers coming to the end of their fixed terms will be able to access lower rates.

“Almost 140,000 mortgages will be maturing in April 2020 and these borrowers should be able to reduce their monthly payments significantly by remortgaging to a new deal.”

Leeds Building Society’s new no-fee fixed rate products, which all come with free standard valuation and fees assisted legal services, include:

- 1.79% two year fixed rate up to 75% LTV

- 1.84% three year fixed rate up to 75% LTV

The Society has also reduced its five year fixed rate up to 75% LTV by 0.05% to 1.89%.

A homeowner with the average outstanding capital moving onto the industry average reversion rate could save more than £1,700** a year by making use of the Society’s no-fee fixed rates.

Matt added: “We know that financial resolutions are popular and many people start the New Year looking to save more money. Actively seeking a better mortgage deal on maturity is one way to reduce monthly outgoings and it is important borrowers give themselves enough time to find the best deals.

“We’ve used our experience and expertise to add two and three year deals to our no-fee product range, as well as reducing our existing five year fixed rate product, as we continue to meet the needs of borrowers and help more people have the home they want.”

Leeds Building Society recently added two Flexit mortgages, which have no early repayment charges (ERCs) and enable unlimited overpayments, to its 75% LTV product range.

* Mortgage data from CACI

** Illustrative example comparing average reversion rate customer (£150,000 loan at industry average reversion rate of 3.83% over an 18.75 year term) from CACI data.

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.

The Society operates throughout the UK and had assets of £20.7bn at 30 June 2019 (£19.4bn at 30 June 2018). The UK’s fifth-largest mutual is a Best Companies 2* employer and its head office is in the centre of Leeds, where it has been based since 1886.

Key features

Two Year Fixed Rate – No Fee

  • Fixed at 1.79% up to and including 30 April 2022
  • Followed by a 1.25% discounted from our SVR up to and including 30 April 2025
  • Available up to 75% LTV
  • No completion fee
  • Free standard valuation
  • Fees assisted in-house legal service for standard re-mortgage
  • 10% penalty free capital repayments allowed

Three Year Fixed Rate – No Fee

  • Fixed at 1.84% up to and including 30 April 2023
  • Followed by a 1.25% discounted from our SVR up to and including 30 April 2025
  • Available up to 75% LTV
  • No Completion fee
  • Free standard valuation
  • Fees assisted in-house legal service for standard re-mortgage
  • 10% penalty free capital repayments allowed

Five Year Fixed Rate – No Fee

  • Fixed at 1.89% up to and including 30 April 2025
  • Available up to 75% LTV
  • No Completion fee
  • Free standard valuation
  • Fees Assisted in-house legal service for standard re-mortgage
  • 10% penalty free capital repayments allowed