Leeds Building Society is set to reduce interest rates across a broad selection of its mortgage products from Thursday.
The lender will implement cuts of up to 40 basis points (bps) on a range of deals including residential, first-time buyer, shared ownership, buy-to-let, portfolio buy-to-let and interest-only mortgages.
Among the headline reductions is a 5-year residential fixed rate product, available up to 95% loan to value, which will fall by 30bps to 4.94%. This product comes with no completion fee, a free standard valuation, and includes tapered early repayment charges, alongside a 10% annual capital overpayment allowance.
First-time buyers will also see a notable reduction, with a 3-year fixed rate product falling to 5.18% – a 40bps cut. The offering is also fee-free and available up to 95% loan to value, with similar incentives to the residential range.
Elsewhere, the lender’s Income Plus 5-year fixed product, which targets enhanced affordability for first-time buyers, will now be priced at 4.99%, representing a 30bps reduction.
Shared ownership borrowers will benefit from a smaller cut, with a 2-year fixed rate dropping by 7bps to 5.12%. This deal includes a £500 cashback incentive and is available up to 95% of the borrower’s share.
Jonathan Thompson, senior product & pricing manager at Leeds Building Society, said: “We hope these changes will ease the pressure on homeowners nearing the end of their fixed-term deals, whilst also supporting first-time buyers.
“We’re especially pleased to be reducing rates on our Income Plus products which enhance affordability for first-time buyers, and we remain committed to supporting members with a competitive and comprehensive product offering.”
The reductions follow a series of rate cuts seen across the mortgage market in recent weeks as lenders adjust to shifting swap rates and increased pricing competition. With inflation falling and the Bank of England holding interest rates steady, borrowers are seeing more favourable fixed-rate options re-emerge, particularly in higher loan-to-value brackets.
The updated Leeds Building Society products will be available from 10 July.
