by Mark Johnston
Insiders from Leeds Building Society are urging potential borrowers who are considering taking out the lenders new fixed rate mortgage which doesn’t lock customers in to act fast. The new home loan offers customers the security of a fixed rate mortgage without locking them in to a deal. This allows protection from potential base rate increases whist still providing a degree of flexibility.
Experts from the building society are expecting high demand so are warning borrowers to apply quickly or risk loosing out. The mortgage is being offered by the Leeds building society on a three year term for just 5.14% with an excellent 80% loan to value so it should appear to many borrower looking for a good deal.
Kim Rebecchi, sales and marketing director at Leeds Building Society said: “This type of mortgage, with a fixed rate but non-locked in is proving more popular and I would urge customers to act quickly to avoid disappointment.” She hopes that the new product will give customers the security of being knowing their monthly outgoings whilst not locking them in over a long period. Ever since the financial crisis, lenders have had to come up with radical ways to tempt new customers. Borrowers are looking for flexibility in a mortgage and this seems to give just that.
This is not the first ground breaking product the building society has launched, recently the announced a new Mortgage Saver account. The savings account is designed to help first time buyers purchase their first home.
The account will pay double the amount of interest of a normal savings account but more importantly they hope it will focus first time buyers to save for their deposits and become a key part of their plan to get onto the property market.
Kim Rebecch said: “This product offers first-time buyers an excellent introduction to the mortgage process by encouraging and supporting, through double interest, the process of saving up for a deposit. Furthermore, the double interest is paid in the form of a cashback, which means it can be paid gross. We also include interest earned over the life of the savings account, so the value of the cashback is even higher.”
The building society carried out extensive research to indentify what would help first time buyers. Ms Rebecchi went on to say: “Customers will benefit from regular reviews with qualified mortgage advisers so that they fully understand the amount they can borrow and the costs involved as their circumstances and the market change.”
Recently 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: “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.
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