Leeds Building Society has announced a reduction in mortgage rates by as much as 0.20% on several of its mortgage products. This strategic decision affects loans at both 75% and 90% loan-to-value (LTV) ratios. Additionally, the institution is broadening its portfolio by introducing new mortgage options for those with only a 5% deposit.

Among the revised offerings, the highlight is the two-year fixed rate at 85% LTV, which has been reduced to 5.14%, although it comes with a £999 fee. This adjustment makes it a more attractive option for borrowers seeking stability in their mortgage costs over a shorter period.

Further enhancing their mortgage range, Leeds Building Society has also rolled out new fee-free mortgage options. A two-year fixed rate at 5.04% for up to 75% LTV stands out for those looking to save on upfront costs. For longer-term planners, a new five-year fixed rate at 5.39% up to 95% LTV has been introduced, which is particularly significant for first-time buyers with smaller deposits.

A Strategy Aimed at Helping Homeowners

Jonathan Thompson, the senior product and pricing manager at Leeds Building Society, explained the dual approach of the recent changes. The reduction in rates for existing residential two-year fixed-rate mortgages aims to make monthly payments more affordable, which can be crucial for budgeting homeowners.

Moreover, the addition of a new fee-free five-year fixed rate at a 95% LTV is designed to enhance the accessibility of homeownership. This is especially important in a fluctuating economic environment where many potential buyers may find it challenging to accumulate large deposits.

Commitment to Members

Thompson emphasised that the adjustments were not just about staying competitive. The move aligns with the Society’s core mission to support its members by making homeownership more attainable. By adjusting their mortgage offerings to reflect market conditions, Leeds Building Society hopes to ease the financial burden on existing and prospective homeowners alike.