Leeds Building Society has announced rate reductions of up to 20 basis points across its residential mortgage range, ahead of this week’s decision on interest rates by the Bank of England.
The updated products, which come into effect from 6 May, include a selection of two-year fixed-rate deals aimed at home movers, those remortgaging, and first-time buyers with significant deposits. The decision to cut rates arrives just days before the Bank’s Monetary Policy Committee meets on Thursday to determine whether the base rate will be adjusted from its current level of 5.25%.
Among the new offerings is a two-year fixed-rate mortgage at 4.07% for borrowers with up to 65% loan to value. The product carries a £1,499 completion fee but includes a free standard valuation and a fees-assisted in-house legal service for remortgages. Two fee-free options are also available: a 4.34% rate for up to 65% LTV, and a 4.44% rate for up to 75% LTV, both of which offer the same valuation and legal benefits.
All of the revised products feature tapered early repayment charges and permit 10% penalty-free capital overpayments annually, offering additional flexibility to borrowers who may wish to reduce their loan balances ahead of schedule.
Jonathan Thompson, senior product and pricing manager at Leeds Building Society, said the rate cuts were designed to ease the financial burden on borrowers nearing the end of their current fixed-term deals.
“The changes we have made to our mortgage range today will hopefully go some way to alleviating the pressure on homeowners who are coming towards the end of their fixed-term rate,” he said. “We’ve implemented these changes to give brokers, buyers and homeowners greater choice as rates drop across the market, and we continue to assess our range of products in support of new and existing members.”
The society’s decision comes at a time of renewed optimism in the mortgage market, as lenders continue to adjust pricing in response to stabilising swap rates and cooling inflationary pressures. Analysts widely expect the Bank of England to hold rates steady this week, but the market is watching closely for signals of a possible cut later in the summer.
