The Monetary Policy Committee voted last week to keep Bank of England base rate at 4.75 per cent. This is the eighth consecutive month the rate has remained unchanged, with the last change being an increase of 0.25% back in August
2004. Market sentiment appears to be changing with many commentators now believing that interest rates will not rise this year.
Leeds & Holbeck Building Society has found that customers like the idea of linking their mortgage to bank base rate. For customers wishing to benefit from this type of product tracking Bank of England base rate and not wanting to pay any fees, the Society has launched a Fee Free 3-year Base Rate Tracker mortgage.
The rate of 5.19% (Base Rate + 0.44%) is available up to 90% loan to value and comes with a free valuation up to £305. There are also free in house legal services for remortgages and there is no higher lending or completion fee payable.
Karen Wint, Head of Marketing said, "These products will prove attractive to both first time buyers and remortgage customers who are looking to benefit from a mortgage without any set up costs. We have also recently simplified our processes and made it easier for customers to take out our mortgages.
Our new credit scoring system means that, in many cases, we need very little documentation from customers before issuing a formal offer."
