Leeds Building Society mortgage updates 2025
Leeds Building Society has today introduced significant changes to its mortgage offerings for 2025, with updates affecting residential, affordable housing, Buy to Let (BTL), and holiday let products. The last few months have seen a lot of fluctuation and unpredictable mortgage market trends, and we all hoped that 2025 would usher in a new era of stability and rate decreases…that doesn’t yet seem to be the case for Leeds. In this article I will run through the Leeds Building Society mortgage updates for 2025.
Key Changes In Leeds Building Society Mortgage Updates
Several updates have been made to Leeds Building Society’s mortgage portfolio this week, including:
- Rate Adjustments: Selected 2- and 5-year residential fixed rates have seen increases.
- Product Withdrawals: Certain residential rates and holiday let products have been withdrawn.
- Affordable Housing and Buy to Let Rates: Selected 2-year rates in these categories have been increased.
- Extended End Dates: Buy to Let end dates have been extended to provide greater flexibility.
These changes affect both new and existing borrowers, emphasising that all kinds of borrowers are likely to be affected by Leeds’s rate increases and also the importance of reviewing mortgage options regularly with a mortgage advisor to ensure the most competitive rates.
Highlights of Updated Products
The following updated mortgage products were announced by Leeds:
Residential Mortgages (First-Time Buyers)
- 5-Year Fixed Rate: 90% Loan-to-Value (LTV), 4.89% interest, no fees.
Residential Mortgages (Home Movers & Remortgages)
- 2-Year Fixed Rate: 80% LTV, 5.08% interest, no fees.
- 2-Year Fixed Rate: 85% LTV, 5.22% interest, no fees.
Reach Residential Mortgages (First-Time Buyers)
- 5-Year Fixed Rate: 90% LTV, 5.05% interest, no fees.
First Homes / DMS Mortgages
- 2-Year Fixed Rate: 75% LTV, 5.34% interest, no fees.
- 2-Year Fixed Rate: 70% LTV for purchase and remortgage, 5.44% interest, no fees.
- 2-Year Fixed Rate: 75% LTV for purchase and remortgage, 6.70% interest, no fees.
Shared Ownership Mortgages
- 2-Year Fixed Rate: 90% LTV for purchase and remortgage, 5.34% interest.
- 2-Year Fixed Rate: 95% LTV for purchase, 5.79% interest.
Why Are Rates Increasing?
The recent rate hikes seem to perfectly reflect broader economic pressures, including persistent inflation and efforts by the Bank of England to curb rising costs through increased base rates. As lenders reassess their risk and margin calculations, borrowers are experiencing higher rates across many mortgage products. However, we do still predict that inflation will drop again in 2025, and this should ease some of the pressure on the lenders, encouraging rate decreases. But when this will happen exactly…we don’t know!
A Complex Mortgage Market
With the mortgage landscape becoming increasingly complex, finding the most suitable and competitive product is more critical than ever. At Oportfolio Mortgages, our team of qualified mortgage advisors specialises in helping clients to beat these challenges.
We work closely with a wide range of lenders, including Leeds Building Society, to find the best solutions for your unique circumstances. Whether you are a first-time buyer, remortgaging, or expanding your property portfolio, our expertise ensures that you secure a mortgage product that aligns with your financial goals. Contact Oportfolio Mortgages today for tailored advice and access to the latest mortgage deals.
