Leeds Building Society launches new tracker and fixed rate mortgages

Leeds Building Society has launched new 2-year base rate tracker (BRT) mortgages, with a starting rate of 3.20%, as well as a new 2-year non locked in fixed rate mortgage at 4.60%.

The mortgages come with no higher lending charge and allow a minimum of 10% capital repayments each year, without notice or penalty.

Kim Rebecchi, Director of Sales & Marketing said:

“The feedback we have received is that many customers are looking for 2-year deals and, in particular, that BRT mortgages are in demand.”

“That is why we have launched this range to give customers a competitive option over a 2-year period combined with the flexibility of capital repayments without penalty.”

Leeds Build Society has also announced that it is extending its ISA range in preparation for the change to the ISA limit for over 50s. In a fortnight, anyone born on or before 5th April 1960 will be permitted to top up their ISA with an additional £1,500 tax free, so Leeds Building Society has extended all of fixed rate ISA to allow for this and is also accepting transfers from other providers. Its ISA range includes products paying up to 4.60%, which is the equivalent of 7.67% for higher rate tax payers and 5.75% for basic rate tax payers.

Ms. Rebecchi added:

“The Financial Services Authority (FSA) stated it was up to ISA providers to decide if they will allow eligible customers (those born on or before 5 April 1960) to subscribe up to the higher ISA limits from 6 October. However, we have seen very high ISA inflows this year and are very aware that tax-free savings are extremely important to our customers.”

“Some ISA customers, who have invested the maximum possible, could have £43,200 invested in an ISA, with a further £1,500 available from October, plus accrued interest. With many ISAs in the market paying less than 1%, investors could be missing out on at least £1,609* of tax-free interest which, in this current low interest rate environment, is a significant difference.”

“There is no doubt that investors should review their existing savings and consider transferring their ISAs, to ensure they are maximising their tax free return.”

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