New Best Buy Mortgage Rate From Leeds Building Society Has Sting In The Tail

Leeds Building Society has taken the lead this week with a best buy five-year fixed rate at 4.59%. Historically low interest rates make this a good time to lock in to benefit. But you have to take the lender’s own Homecover Insurance until June 30, 2015 to get this rate. Otherwise the rate rises to 4.83%. This sting in the tail makes this mortgage less appealing for borrowers not prepared to take the lender’s own cover.

Pros: Best buy five year fix, you can make capital repayments of 10% of the amount borrowed per year without penalty. £199 booking fee. Early repayment charges of 5/5/4/3/2% respectively in each of the years you are locked into the deal.

Cons: Available up to 60% loan-to-value, £1,300 completion fee up to £500,000, and 1% of the loan above £500,000. Have to take the lender’s home insurance to qualify for this best-buy rate.

Any exclusions? Anyone needing to borrow more than 60% of the property value.

Alternatives: Yorkshire Building Society 4.69% fixed until May 31, 2015, then SVR (currently 4.99%). Available up to 75% LTV, Booking fee £195, arrangement fee £300. Redemption penalties 5/5/5/4/3 respectively.

Further reference: Speak to a mortgage adviser Related: Latest mortgage news, Remortgage for a better rate