Leeds Building Society tops the tables with mortgage rate improvements
From Tuesday 2 January 2024, Leeds Building Society will make reductions on products across its mortgage range with the aim of saving its members hundreds of pounds on their monthly mortgage payments.
Supporting brokers, homeowners who are looking to renew their mortgage and first time buyers alike, the changes will come as good news to many at the start of the new year.
Hero Products:
2 Year Fixed Rate – Available up to 75% LTV
• Fixed rate of 4.60% up to and including 31 March 2026
• Followed by a 0.75% discount from SVR (current rate 7.49%) up to and including 31 March 2029
• Completion fee of £999
• Free standard valuation up to £999
• Fees assisted in-house legal service for remortgages
• Early redemption charges of 2.5% / 1.5% of the amount redeemed
• 10% penalty free capital overpayments p.a
2 Year Fixed Rate – Available up to 95% LTV
• Fixed rate of 5.59% up to and including 31 March 2026
• Followed by a 0.75% discount from SVR (current rate 7.49%) up to and including 31 March 2029
• Available for purchase only
• Completion Fee of £999
• Free standard valuation up to £999
• Early redemption charges of 2.5% / 1.5% of the amount redeemed
• 10% penalty free capital overpayments p.a
Shared Ownership 5 Year Fixed Rate - Available up to 95% Borrower Share
• Fixed rate of 5.59% up to and including 31 March 2029
• No completion fee
• Free standard valuation
• Early redemption charges of 5% / 5% / 4% / 3% / 2% of the amount redeemed
• 10% penalty free capital over repayments allowed each year
Buy-to-Let 2 Year Fixed Rate - Available up to 60% LTV
• Fixed rate of 5.55% up to and including 31 March 2026
• Followed by a 1.00% discount from BTL Variable Rate (current rate 7.54%) up to and including 31st March 2029
• No completion fee
• Free standard valuation
• Fees assisted legal service for in-house re-mortgages
• Early redemption charges of 2.5% / 1.5% of the amount redeemed
• 10% penalty-free capital over repayments allowed each year
Matt Bartle, Director of Products at Leeds Building Society, said:
“In support of our purpose of putting homeownership within reach of more people, we have decided to start strong in 2024 by making reductions on rates across our mortgage product range to support more people onto and up the property ladder.
“In 2023 the mortgage market was constrained due to the ongoing pressure of the increasing cost of living, but as a lender we want to play our part to try to overcome the hurdles people face and help more people into homeownership.”
Example Savings
A typical customer could save around £300 per month on these improved rates.
According to CACI data, the average rate of a maturing mortgage is currently 2.04%, and the average residential reversionary rate is 7.73%. This means that a customer with a £155,000 loan on a 25-year mortgage term will currently be paying £659.58 per month, which would move to £1,167.56 if they stayed on the reversionary rate. If that customer moved to the Leeds Building Society 75% LTV £999 fee product, they would be paying 4.60% which would make monthly repayments £869.50 – a potential saving of £298.03 on the reversionary rate.
CACI’s MMDB, Stock, as at end October 2023 (April-24 Market Residential Maturity - £25.1bn / 162k accounts).
Leeds Building Society was recently named Best Shared Ownership Mortgage Lender at the Your Mortgage Awards. The Society also won the title of Best Shared Ownership Mortgage Lender in the 2023 What Mortgage Awards earlier this year, its eighth consecutive year of success in this category.
About Leeds Building Society
Leeds Building Society operates throughout the UK and had assets of £26.9bn at 30 June 2023 (£24.1bn at 30 June 2022). The UK’s fifth-largest Building Society has its head office in the centre of Leeds, where it was founded in 1875.