Leeds Building Society has refreshed its range of welcome mortgages, which come with a 0% interest rate at the start of the loan.
The Society launched the unique mortgage in 2013 and won industry awards. Welcome mortgages are fixed rates and give borrowers three months at the start of their term where they pay 0% interest. The total cost to borrowers is comparable to the Society’s equivalent fixed rate mortgages.
Highlights include: a fee saver 2.64% 5-year fixed rate available up to 85% LTV and a fee saver 3.70% 5-year fixed rate available up to 90% LTV. Added incentives include a free standard valuation and no product fee.
Chris Barker, founder and director of, Manchester Money, said: “I remember the deal coming out before but personally I don’t think they’re great deals.
“There are a lot more deals with better rates. You can get a 2.39% 5-year fixed rate without product fees at Coventry. I think when you source it it can be misleading because if you look at the overall cost it may not be as good.
“The borrower might get lower payments for two or three months but over the long-term of the five years it’s more expensive. I look at this overall cost rather than the headline rates, which any good broker would do.”
Jaedon Green, Leeds Building Society’s director of product and distribution, said: “It almost exactly five years since we launched the welcome mortgage and we’re delighted it’s been so well-received by borrowers.
“We created welcome mortgages because moving home is a difficult process to budget for. The majority of people underestimate the costs involved.
“Welcome provides a breathing space of three months to help homebuyers navigate the challenges of moving home, whether coping with unexpected costs, emergency DIY or simply keeping finances under control, while they adjust to the running costs of the new home.”