The Leeds Building Society has launched a range of new mortgage products with 0% interest payments for a period of three or six months for those with at least 10% deposit. This range of products called The Welcome Mortgage, is available to all with the exception of those wishing to re-mortgage an existing property. Applications must be made on a repayment basis as interest only mortgages are not available.
The new products will allow borrowers to repay only the capital element of their mortgage for up to six months before reverting to the normal capital and interest repayment. The lender said; ‘The products were introduced to help buyers manage the costs of moving home and would result in borrowers paying a similar amount over the term of the mortgage as those who started repayments immediately’
Kim Rebecchi, Sales and Marketing Director for the Society said ‘the products were intended to give borrowers more flexibility. ‘The cost of buying a home is not limited to finding a deposit and being able to pay the mortgage. Stamp Duty, solicitor’s fees and searches all have to be budgeted for’.
What’s on offer?
The three year mortgage rate starts from 3.79% with a three month interest free period whilst the five year mortgage has a starting rate of 4.23%. The interest rate changes depending on which option you choose. Borrowers can also opt for a loan to value of up to 90%. The application fee is surprising low at £199 which is extremely competitive in today’s market.
Who will this help?
Clearly, these products will be very attractive to first time buyers, however anyone moving home and looking to reduce their costs for up to six months by taking advantage of the interest free period will benefit.
It should be said that the mortgage market is a very complex one. Lenders are introducing products, varying rates and changing fees on a daily basis. Sifting through the many hundreds of options to find the most competitive product to meet your needs requires a great deal of knowledge.
This is why taking advice from a Mortgage Adviser who can undertake this research makes much more sense. Neilsons are one of the few Solicitor Estate Agents who can offer mortgage advice in house and guide you through the options open to you.
Understanding the dynamics of property market is also a crucial component and we will talk you through how the market is performing in the area you are selling and what is happening in the area you are thinking of moving to. So, why not call us to arrange an appointment.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE