Leeds Building Society Cuts Remortgage Rates
Leeds Building Society has implemented reductions in interest rates across its mortgage offerings, catering to first-time buyers and those seeking to remortgage.
Key highlights include a two-year fixed rate at 75% loan-to-value (LTV), now at 4.60%, followed by a 0.75% discount from the Standard Variable Rate (SVR) – currently set at 7.49% – valid until March 31, 2029. Additionally, a two-year fixed rate at 95% LTV has been reduced to 5.59%, followed by a 0.75% SVR discount until March 2029, exclusively available for purchases. Both products come with a £999 completion fee.
Furthermore, a shared ownership five-year fixed rate, applicable up to a 95% borrower share, is now at 5.59%, with no completion fee.
Lastly, a fee-free buy-to-let two-year fixed rate at 60% LTV has been adjusted to 5.55%, followed by a 1.00% discount from Skipton’s buy-to-let variable rate (currently 7.54%) until the end of March 2029.
The end dates for these offerings have been extended to the end of March of the respective year. The products include a free standard valuation, fee-assisted in-house legal service for remortgages, and 10% penalty-free capital repayments each year.
Leeds Building Society suggests that a typical customer could save approximately £300 per month with these improved rates.
According to CACI data, the average rate of a maturing mortgage is presently 2.04%, while the average residential reversionary rate is 7.73%. This means that a customer with a £155,000 loan over a 25-year mortgage currently pays £659.58 per month. This amount would increase to £1,167.56 if they stayed on the reversionary rate. By opting for Leeds Building Society’s 75% LTV £999 fee product at 4.60%, monthly repayments would be £869.50, potentially saving £298.03 compared to the reversionary rate.
Matt Bartle, Director of Products at Leeds Building Society, stated, “In support of our mission to make homeownership more accessible, we have chosen to start 2024 by reducing rates across our mortgage product range, assisting more individuals in getting onto and advancing up the property ladder. In 2023, the mortgage market faced challenges due to the escalating cost of living, but as a lender, we aim to contribute towards overcoming these hurdles and aiding more people in achieving homeownership.”