Mortgage hunters will be able to access a flexible loan term after the Leeds Building Society introduced a new dea
The lender has now launched a 10-year fixed rate package at 2.75 per cent interest, with no early redemption charges after five years.
The offer is targeted at customers wanting long-term stability without the usual decade-long commitment.
It is available for loan to value rates of up to 65 per cent and has tapered charges for the first five years.
Director of product and distribution Jaedon Green said:-
“We’ve had feedback from lots of customers looking for long-term stability but reluctant to tie in for a full 10-year period, so they choose a five-year deal instead.”
“This deal is a good compromise - being able to redeem without penalty after five years gives these borrowers the security of a 10-year fix if they want to stick with it, but the flexibility to switch or pay off their mortgage after five years if they wish.
“The potential cost of remortgaging is something borrowers don’t always take into account, which is another reason why longer term deals will suit some people.”
The bank has also cut the rate on its conventional 10-year fixed rate mortgage to 2.55 per cent and reduced the fee to £999. This is available up to 65 per cent loan to value.
All fixed rate mortgages are portable, subject to the borrower meeting affordability requirements at the time of porting.