Leeds launches low rate high fee buy-to-lets

Ryan Bembridge

November 21, 2018

Leeds Building Society has launched two buy-to-let mortgages with a low rate but a high fee.

The products are 2-year discounts priced at 1.14% to 60% loan-to-value and 1.34% to 70% LTV, both with a £2,499 fee.

Jaedon Green, drector of product and distribution at Leeds Building Society, said: “These shorter-term discount mortgages offer market-leading rates and a package of incentives.

“Widening our range of discounted residential mortgages was well-received so we’ve seen that there’s an appetite for variable rate deals – with the potential for lower monthly repayments than equivalent fixed rate mortgages– among borrowers who don’t expect interest rates to increase significantly in the near future.

“We may be in a rising rate environment but the Bank of England has suggested any Base Rate increases will be small and gradual, in recognition of the fact that rates have been at historically low levels for the last decade.

“The past couple of years have seen a lot of change for landlords, with the introduction of new rules for portfolio landlords and wide-ranging tax changes, the impact of which is still being felt.

“For that reason we know landlords need to take a far more active role in managing their portfolio to maximise yield and making sure they have the best deal on their mortgage finances.”

Products come with a free standard valuation, fee assisted legals on remortgages and 10% overpayments without penalty.

After a two year discount of 4.55% the discount is reduced to 0.70% for the following three years, while there are tapered ERCs of 3%-2% for years one and two.

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