by Mark Johnston
Following a spate of new mortgage products and rate cuts, Leeds Building Society is reducing its two year discounted buy to let mortgage from 4.89 to just 4.59%. This is fantastic news for would be investors that have been unable to secure cheaper lending since the financial crisis but an end to many buy to let mortgage products.
The buy to let mortgage has a loan to value of 70% so borrowers only need to find a 30% deposit to start investing in buy to let property. The great news is that the building society also allows up to a ten percent overpayment each year without incurring any sort of penalty. This highly competitive rate compliments our existing two-year discount available up to 65 per cent loan-to-value at only 4.29 per cent.”
The Leeds Building Society’s sales and marketing manager, Kim Rebacchi said: “We have looked carefully at the buy-to-let market and reduced this two-year discount, available up to 70 per cent, by 0.30 per cent.
At the end of last year the Leeds Building Society launch a new range of mortgages which they say will provide their current and potential new customers looking to switch, an opportunity to fix their mortgage rate ahead of any base rate increases by the Bank of England.
Ms Rebecchi said at the time: “These products provide a great opportunity to secure a fixed rate now, combined with certainty of payments and peace of mind,”
The new range makes provision for a wide range of circumstances and those with differing size deposits. The three year fixed rate mortgage comes in three different options. The first is a 75% loan to value version at 3.45% whilst the second has a loan to value of 80% at 3.89%. The final rate of 5.29% is for those with a smaller deposit of 10% as the loan to value is 90%, which is great for first time buyers.
The building society is heralding these mortgages as great for those looking for the security of knowing how much monthly repayments will be over a medium term like three years. This is fantastic for those who are concerned that the base rate may go up soon and want to shield themselves from it but do not want to be tied in for too long.
The real positive about Leeds Building Society is that they allow their customers to overpay by up to 10% each year without incurring any penalty. This is great for those looking to take advantage of the low base rate by paying off their mortgage with the extra cash.
Leeds Building Society started back in 1875 as the Leeds and Holbeck Building Socitey and is now the fifth largest in the United Kindgom. The building society has 650,000 customers which is serves via 70 branches across the UK including 30 in Yorkshire and some as far as Dublin and Gibraltar. In 2005 they changed their name to Leeds Building Society but in not connected to the Leeds Permanent Building Society which became part of the Halifax in 1995.With its head office in Leeds city centre, the building society was voted best building society four years ago by Mortgage Magazine.
Early last month they also hit the news when they launched their new shared ownership mortgage which has a great rate of interest for a fixed rate mortgage at 5.99%.
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