The Leeds Building Society has cut the rate on its two-year fixed rate mortgage by 0.20 percentage points to 2.95%.

The deal is available up to 75% LTV and there is no higher lending charge.

10% capital repayments are allowed each year without penalty.

It comes with a £199 booking fee and £800 completion fee up to £500,000, 1.00% over £500,000.

There are tapered early repayment charges of 3% of the amount redeemed in year one and 2% in year two.

The rate includes a 0.24% discount for taking the Leeds’s Homecover insurance – required until 30 November 2014. If home cover is not taken at any time, the 0.24% discount will not apply.

“This is a fantastic opportunity for those borrowers who wish to lock into the certainty of low fixed repayments,” said Kim Rebecchi, the Leeds’ sales and marketing director.

“This product delivers customers with the peace of mind and security that their monthly payments will remain the same for two years. This is combined with the flexibility of 10% capital repayments each year at a very affordable rate.

“The rate of 2.95% is available up to 75% loan to value. The version available between 76% and 80% LTV has also seen a 0.20% rate reduction to 3.29%. Furthermore, we have reduced the rate from 3.89% to a new market leading deal of 3.75% available between 81% and 85% LTV.

“To help compliment these two-year fixed rate deals, a range of market leading ‘fee assisted’ products are available. These deals are ideal for re-mortgages, offering free standard valuations and free in-house legal services for standard re-mortgages, together with reduced fees.”