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.
Share this..
Related stories
Is Renting The Answer To The Property Slump?
The Royal Institution of Chartered Surveyors (RICS) has reported a sharp rise in the number of people becoming landlords or tenants. It seems as though those who are both unable to sell their properties and those who cannot afford to buy are moving into the rental market at different ends. This has actually seen rental values firm in the UK as demand continues to grow. So is the rental market t...
Read MoreUK banks believe mortgage approvals set to fall
A survey by the Bank of England has today cast a shadow over the third quarter and latter part of 2010 with UK banks on the whole expecting a decline in mortgage approvals. Many believe that we will see a tightening of the fiscal environment in UK in the short-term, something which could well continue into 2011 unless the UK economy shows signs of improvement. Should we be alarmed? The realisat...
Read MoreHouse prices 'fall 1.6 per cent'
House prices fell by 1.6 per cent in February, new government figures reveal.The new report, from the Department of Communities and Local Government, also showed that the annual rate of property inflation was down to 6.7 per cent.This forms a 1.3 per cent drop from January's figure - and is indicative of the difficulties buyers are having with securing a mortgage in the credit crunch.Overall, the...
Read MoreBank tipped to make 0.25% cut to base rate
Analysts are tipping the Bank of England's monetary policy committee (MPC) to cut interest rates this week, amid signs of an economic downturn. The MPC is expected to trim rates by 0.25 per cent, bringing the key base rate of interest to five per cent. Factors informing the decision are thought to include signs that the housing market is softening - as born out by a study from the Halifax yesterda...
Read MoreErnst & Young optimistic regarding UK economy
The very influential Ernst & Young Item Club has today issued a very encouraging and moderately upbeat report on the UK economy and the UK housing market. Experts at Ernst & Young believe that while the UK housing market and the UK economy will soften during the remainder of 2010 and into 2011, they are only forecasting a reduction in house prices of 5% from the recent peak and at worst a soft pat...
Read More