Leeds Building Society launches new two- and five-year fixed rate deals for medium loan-to-value (LTV) mortgages and Saffron has announced a 1% reduction to its self-build mortgages as part of its Spring sale.
Leeds Building Society’s new two-year fixed rate mortgages are available at rates from 2.20%(5% APRC) for an 80% LTV mortgage and from 2.40%(5% APRC) for an 85% LTV mortgage. These deals are offered with a free valuation and £750 cashback. A fee of £199 applies.
The lender’s five year fixed rate mortgages come in at 2.10%(4.3% APRC) up to 80% LTV and 2.20%(4.3% APRC) up to 85% LTV.
Leeds Building Society’s director of product and distribution, Jaedon Green, explained that fixed rate mortgages are preferred by most borrowers as they give the security of monthly repayments. While two year fixes remain very popular, he advised that five-year deals are worth considering when rates are so low, so as to lock in to a beneficial rate with extra security.
Included in the sale is a 1% reduction on its self-build mortgages currently advertised, along with a discounted fee, which has been slashed in half from 2% to 1%.
Saffron offers mortgages for self-build projects from £30,000 to £500,000 and reviews applications of up to £1million on a case by case basis.
The lender will also consider funding the full cost of works subject to a maximum 75% of the gross development value. Saffron structures payments so that they are released in stages tailored to the bespoke needs of each project.
Anita Arch, head of mortgage sales at Saffron, said:
“Spring is traditionally the time when self-build projects get underway and we therefore thought a mortgage sale would be a welcome offer!
“Our sale means that self-builders can borrow at variable rates starting from just 4.59% on an interest only or repayment basis, for a period of up to two years. With the fee also being cut in half to just 1%, I have no doubt this will prove to be popular with anyone thinking about building their dream home or converting or refurbishing an existing structure.
“Once the build has been completed, borrowers can apply to switch to any of our other residential mortgage products available at the time.”
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