Leeds Building Society has cut mortgage rates by up to 0.26% across a wide range of products in a move aimed at supporting first-time buyers, home movers and borrowers coming to the end of fixed-rate deals.
From today, the mutual has reduced rates on 169 products across its mainstream and interest only mortgage range. The changes apply to new buyers as well as existing mortgage holders looking to remortgage, and to the brokers supporting them.
The Society said the reductions are intended to help members reduce monthly repayments at a time when affordability remains stretched for many households. With the average UK property valued at £270,000, it estimates that a first-time buyer purchasing with a 10% deposit could pay £1,640 less a year compared with an equivalent mortgage product available in January 2025.
The move is also designed to ease pressure on existing borrowers approaching the end of fixed-rate terms. UK Finance estimates that 1.8 million fixed-rate mortgages are due to expire during 2026, raising concerns about payment shocks for some households as they refinance.
PRODUCT CHANGES ACROSS THE RANGE
Among the revised products is a two-year fixed-rate mortgage available up to 75% loan to value, open to first-time buyers, home movers and those remortgaging. The rate has been reduced to 3.99% from 4.08%, with no fees, a free standard valuation up to £999 and a fees assisted in-house legal service for remortgages.
For first-time buyers with smaller deposits, a two-year fixed-rate product up to 95% loan to value has been cut to 4.65% from 4.79%, also with no product fee and a free standard valuation.
The Society has also introduced a new three-year fixed-rate mortgage at 4.39%, available up to 90% loan to value for first-time buyers, home movers and remortgagors. This comes with no fees, a free standard valuation and access to its in-house legal service for remortgages.
In addition, a three-year fixed-rate product up to 95% loan to value for first-time buyers and home movers has been reduced slightly to 4.82% from 4.86%.
At lower loan to value levels, Leeds Building Society has cut its five-year fixed-rate mortgage up to 65% loan to value to 3.80% from 3.87%. This product is available to first-time buyers and carries a £1,999 fee, alongside a free standard valuation.
SUPPORTING BORROWERS INTO 2026
Jonathan Thompson, senior product manager at Leeds Building Society, said: “We are pleased to kick off the new year with good news for mortgage holders and aspiring buyers as we cut rates across nearly 170 products.
“This action supports our mission to put homeownership within reach of more people, generation after generation.
“As the cost of living continues to rise, we hope that cutting rates by up to 0.26% will have a tangible impact on our members, especially those who have been worrying about coming to the end of their current fixed term.”
