Leeds launches new offset mortgage

Friday 24 March 2006

Leeds Building Society has launched a new fixed-rate offset mortgage today, which it claims combines the stability of a fixed-rate package with the benefits of offsetting.

The lender uses the example of a customer taking a 125,000 mortgage with Leeds' new offer and offsetting 20,000 in its savings account, compared to a borrower who did the same with a Leeds offset mortgage with no linked savings account.

This customer could save up to 37,626 and repay their entire mortgage four years and eight months earlier, based on a repayment term of 25 years.

An interest rate of 5.69 per cent will be fixed on the mortgage until April 30th 2009 and free valuation up to 335 is permitted, as are ten per cent capital repayments per year without penalty.

"This product keeps savings in a completely separate account so there is no need for a fundamental reorganisation of finances," said Stuart Fearn, product development manager at Leeds.

"The product is fee free and the competitive rate, combined with the tax benefits offered on the savings accounts, will prove extremely popular with our customers."

The new Leeds fixed-rate offset mortgage will provide full access to the funds in a customers savings account, as well as a chequebook and balance transfer, standing order and bill payment facilities.


track© Adfero Ltd


Personal finance headlines

> Salt relaunches mortgage range > Natwest mortgage deals unveiled > UCB Home Loans' mortgage offers introduced > John Charcol's two-year fixed-rate loan launc... > Nationwide's two-year fixed-mortgage reductio... > Bank of Scotland revamps mortgage products > Leeds launches new offset mortgage > Increase your flexibility with Kensington > Ten-year mortgage products launched by Leeds > IF discount tracker mortgage launched

Here are your comments on this topic:


Leeds launches new offset mortgage