Leeds Building Society has kicked off the new year with mortgage rate reductions of up to 0.21%.
The largest reduction applies to mortgages for existing borrowers, which Leeds Building Society said was in preparation for the 328,000 mortgages set to mature in the first quarter of the year.
For example, there is a two-year fix up to 65% loan to value (LTV) available for purchase and remortgage, which now has a rate of 4.15%, down from 4.36%. This has a £1,499 fee and free standard valuation up to £999.
Additionally, based on a 90% LTV on an average house price of £282,000, a first-time buyer taking a two-year fee-free product at a rate of 5.25% would save more than £450 each year compared to the equivalent product last year, the mutual said.
Leeds Building Society’s five-year fix up to 90% LTV, for first-time buyers only and available within its Income Plus range, has been lowered from 4.95% to 4.89%. This has no fee and a free standard valuation up to £999.
There is also a two-year fix up to 85% LTV, available to first-time buyers only, priced at 4.79%, down from 4.99%. This has no fee and a free standard valuation up to £999.
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Jonathan Thompson, senior product manager at Leeds Building Society, said: “As part of our mission of putting homeownership within reach of more people, we have decided to start the year by making purposeful action to help those stepping onto the property ladder or coming to the end of their existing fixed term.
“The reductions we have made on rates across our mortgage product range will support more people to make their homeownership dreams a reality and will take financial pressure off households.
“In 2024, the mortgage market was constrained due to the ongoing pressure of the increasing cost of living, but as a lender, we want to play our part to try to overcome the hurdles people face and help more people into homeownership.”
