The Leeds Building Society has unveiled a new 10-year fixed rate mortgage at 2.75%, with no ERCs (Early Redemption Charges) after five years.
The mortgages is available up to 65% loan to value (LTV) and has tapered ERCs for the first five years.
“We’ve had feedback from lots of customers looking for long term stability but reluctant to tie in for a full 10-year period so they choose a five year deal instead,” said Jaedon Green, Leeds Building Society’s director of product and distribution.
“This deal is a good compromise – being able to redeem without penalty after five years gives these borrowers the security of a 10 year fix if they want to stick with it, but the flexibility to switch or pay off their mortgage after five years if they wish.
“The potential cost of remortgaging is something borrowers don’t always take into account, which is another reason why longer term deals will suit some people.”
The mutual has also cut the rate on its conventional 10 year fixed rate mortgage to 2.55% and reduced the fee to £999. This is available up to 65% LTV.
All Society fixed rate mortgages are portable, subject to the borrower meeting affordability requirements at the time of porting.