Leeds goes sub-five on self-certification

Ramesh Sharma

March 25, 2006

As well as the lender’s existing two-year fixed rate, it has added a five-year fixed rate and a three-year tracker to its range.

Both products come with the option of having a fee-free rate and are aimed at giving the Leeds a greater share and customers a greater choice in the self-certification market.

Jeff Kirk, corporate relationship manager at Leeds, said: “The take-up on our two-year self-cert mortgage has been excellent and the product, combined with the service we offer, confirms that clients like what we are offering.

“Therefore, we have introduced these new products to complement the existing fixed rate, and offer clients, who may have income derived from a variety of different sources or do not fit conventional mortgage underwriting criteria, even greater choice.”

The five-year fixed has a rate of 4.95 per cent or 5.49 per cent fee-free. There is no HLC, and early repayment charges (ERCs) start at 5 per cent for the first two years and drop to 2 per cent by the final year. It is available up to 80 per cent LTV.

The three-year tracker has a rate of Base Rate plus 0.49 per cent or Base Rate plus 0.99 per cent fee-free. There is no HLC, a tapered ERC of 4/3/2 per cent and is available up to 80 per cent LTV.

Simon Chalk, mortgage planner at Mortgage Portfolio Services, said: “To see sub-5 per cent on a five-year self-cert product is very good. Combined with the downward-stepping ERC, this adds up to a good package.”

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