5 Jul

New mortgage offers ten per cent capital repayment each year

New mortgage offers ten per cent capital repayment each year

A new mortgage has been released by Leeds Building Society that offers homebuyers the opportunity to redeem ten per cent of the value of their property every year without penalty.

The three-year fixed-rate loan available on 75 per cent loan-to-value (LTV) mortgages was launched earlier this week.

Speaking on the new deal, sales and marketing director at Leeds Building Society Kim Rebecchi said: "[This] is a fantastic opportunity for those borrowers who wish to take away any uncertainty, on what is usually a household's biggest monthly outgoing and lock into low fixed repayments."

She added that the fixed-rate option was a good chance for homebuyers to take advantage of the current interest rates, saying that they "cannot stay this low forever".

Ms Rebecchi stated that the offer should be able to give customers peace of mind that their rate will remain the same until July 2013.

Last week, Nationwide also announced cuts on its mortgage rates, in an attempt to appeal to first-time buyers.

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