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Leeds building society launches 5.35% five-year fixed-rate mortgage

As competition in the UK mortgage market continues to build, today we saw the introduction of a 5.35% five-year fixed-rate mortgage from the Leeds building society. This particular offer is available on 75% mortgages although there is a higher rate of 5.75% available for those looking to borrow up to 85% of loan to value. So are there any catches?

This appears to be a very interesting offer because ultimately lending rates will never go beyond the fixed-rate and customers will be able to repay 10% of the outstanding capital each year, therefore reducing their ongoing interest payments and loan capital. While there will be an £800 completion fee on the agreement and £199 booking fee this has to be balanced off against the potential for future movements in the UK mortgage market.

The future direction of UK base rates is the key to how attractive customers will find the above offer because at this moment in time, with the base rate at 0.5% and mortgages rates stuck around 4% or higher, is it the right move to lock in for the next five years?

If you are looking towards a long-term fixed-rate mortgage agreement it is vital that you take professional advice from independent financial advisers and ensure any moves you make are correct for your situation and your financial standing.

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