Sub-5.75% mortgage launched

Leeds Building Society has introduced a 3-year fixed rate mortgage giving a rate below the current Bank of England base rate of 5.75%. Its aim is to compete strongly against some of the bigger mortgage lenders such as Barclays, Abbey, Mortgage Express and Northern Rock.

This mortgage is fixed at 5.69% over the 3 year term, has no higher lending charge and allows 10% capital repayments each year. Completion fees are 2% of the loan amount, which can be added to the mortgage.

With another rate rise to 6% expected by year end, fixed rate mortgage deals below the current base rate are likely to be popular, despite the predictions that interest rates will fall again next year.
Karen Wint, head of marketing and PR at LBS, adds: "We have also launched a fee free version for customers who require help with other costs including completion fee, valuation fee and legal fees on remortgages."