Leeds Buildings Society is cutting the rates on its two year fixed rate mortgage deal from 5.75 per cent to 5.25 per cent.

Leeds is also launching new three year fixed rate options, starting at 5.99 per cent for an 80% loan to value (LTV), rising to 6.49 per cent for a 90 per cent LTV. The fee will be £999 up to £500,000, above that, it will be one per cent of the loan amount.

The higher lending charge on the new two and three year fixed rate mortgage products has been scrapped, and Leeds will provide a free valuation up to £335. Borrowers will also be allowed to pay up to 10% capital repayments each year without penalty.

“We have cut rates across our fixed rate mortgage range and this new suite of products deliver outstanding value to both new and existing customers,” said Karen Wint, general manager of Marketing & Customer Services at Leeds.

“There are currently many reports in the media saying the best mortgage deals are only available to those with large deposits; however we are offering very competitive deals to those with only a 10% deposit.

“We recognise that many people are struggling in the current financial climate with large increases in the cost of living,” she said.

Ms Wint continued, “many borrowers like the ability to budget through fixed monthly payments.

“The cuts to our fixed rate mortgage range will minimise the payment shock for a sizeable proportion of borrowers and reduce monthly outgoings for many more. This will provide peace of mind at an affordable rate.”

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