Leeds Building Society Announces New Mortgage Products
Almost certainly in response to the recent base rate reduction by the Bank of England, Leeds Building Society has announced updates to its mortgage products. Although not one of the typical big six lenders of the UK, Leeds’s new mortgage products definitely offer some more competitive mortgage options, particularly to our new and existing clients at Oportfolio. Following the Bank of England’s decision to lower the base rate by 0.25%, from 5.00% to 4.75% recently, Leeds Building Society and several other lenders have already reacted favourably. In this article, I will run through some of the more interesting changes announced by Leeds, and why you need to act fast if you are looking at getting a new mortgage.
New Mortgage Products Announced By Leeds Building Society
The updates from Leeds Building Society, shared with our mortgage advisors at Oportfolio Mortgages this morning, show new lending products and revised rates. These changes impact only new mortgage applications and rate switch applications, but both look like they will provide more options and flexibility for both our residential and buy-to-let customers.
Key Updates On New Lending
Now, there were many changes and updates announced by Leeds in their recent email update, so I have picked out a few of the most significant ones in my opinion:
- Buy-to-Let (BTL) Options: Leeds has introduced Buy-to-Let and Portfolio BTL products at a competitive 60% Loan-to-Value (LTV), meaning that new products are available for borrowers with 40% deposit.
- Enhanced Shared Ownership Products: In response to growing demand for shared ownership schemes in a tough first-time buyer market, Leeds is now offering options for 85% and 90% borrower shares. This expansion gives buyers with smaller deposits a chance to get onto the property ladder without having to save an extortionate amount of money, or get a gift from family.
- Extended End Dates for Key Mortgage Products: For many first-time buyers, you might not know the significance of end dates on mortgage products, but believe me, they are very important. To enhance flexibility, end dates have been extended on various 5-year products, including Residential, Reach, Interest Only, Part & Part, and Retirement Interest Only Mortgages. This change benefits those seeking longer-term stability and planning options.
- Introduction of 95% LTV Products for Residential Buyers: This is perhaps the most significant change announced by Leeds. Leeds Building Society has launched new 5-year fixed-rate products for residential buyers with a 95% LTV, creating options for first-time buyers and those with lower deposits.
New Fixed-Rate Product Details
In the email communication from Leeds, they provided two whole pages of mortgage rate updates, however I have curated some of the most interesting 5-year fixed product rates here to give you an idea of what is currently on offer:
- 5-Year Fixed Rate – Purchase (80% LTV): 4.49%
- Legal Assisted 5-Year Fixed Rate – Remortgage (80% LTV): 4.59%
- 5-Year Fixed Rate – No Fee – Purchase (85% LTV): 4.69%
- Legal Assisted 5-Year Fixed Rate – No Fee – Remortgage (85% LTV): 4.90%
- 5-Year Fixed Rate – No Fee – Purchase (90% LTV): 4.79%
- Legal Assisted 5-Year Fixed Rate – No Fee – Remortgage (90% LTV): 5.26%
- 5-Year Fixed Rate – No Fee – Purchase (95% LTV): 5.23%
Although they don’t necessarily look that competitive, these are actually very good rates at high loan to values and with the security of fixing for 5-years.
What’s Next For Borrowers?
With the base rate now at 4.75% following last week’s cut, we anticipate further rate reductions as the Bank of England monitors inflationary pressures. In December, we expect an additional base rate cut, which could lead to more fluctuation in mortgage rates across the market.
Additionally, with the Labour government’s recently announced budget, economic policies are poised to influence interest rates in the coming months, creating potential for further shifts in the mortgage world. That’s why expert guidance is essential for mortgage borrowers! At Oportfolio, our advisors stay informed of all market changes to help our clients to secure the most competitive mortgage options available. If you or anyone else you know is interested in getting a new mortgage, please give our team a call for a fee free initial mortgage consultation.
