"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."
- Matt Bartle, director of products at Leeds Building Society
Leeds Building Society has made rate reductions across its mortgage range for both first-time buyers and those looking to renew their mortgage.
Highlights include a two-year fixed rate at 75% LTV, down to 4.60% followed by a 0.75% discount from SVR (current rate 7.49%) up to and including 31st March 2029. A two-year fix at 95% LTV has also reduced to 5.59% followed by a 0.75% discount from SVR until March 2029, available for purchase only. Both products come with a £999 completion fee.
In addition, a shared ownership five-year fixed rate available up to 95% borrower share is reducing to 5.59% with no completion fee.
Finally, a fee-free buy-to-let two-year fixed rate at 60% LTV is down to 5.55% followed by a 1.00% discount from Skipton's buy-to-let variable rate (current rate 7.54%) up to the end of March 2029.
End dates have moved to the end of March of the relevant year and the products offer a free standard valuation, fees assisted in-house legal service for remortgages, and 10% penalty free capital over repayments allowed each year.
The Society says 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.
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.”
