In addition, the mortgage has flexible benefits. The mortgage is to be launched on Monday 19th May. Fixed rate loans over 15 years and 20 years are also available at 5.39% (5.7% APR).
In last month's budget the Chancellor commissioned research on how the UK 'can develop a market for long-term fixed rates'. Mr Brown suggested that there might have been a market failure in providing such products, which are popular in the US and other parts of Europe
Leeds & Holbeck believes that its new long-term fixed-rate mortgages address the criticisms that such products have traditionally been too inflexible and too expensive to be popular. Furthermore, the mortgages offer “option windows” to redeem or transfer without penalty after five years and then every two years thereafter.
Tony Burdin, head of marketing & PR at Leeds & Holbeck Building Society, said: “The availability of this type of mortgage is great news for the many people who want to be sure that they can afford their monthly repayments whatever happens to the economy or interest rates. It's a real win-win offer, given that customers can choose to walk away from the deal after just five years with no penalties and then every two years thereafter. The 5% capital repayment facility, combined with the biennial repayment windows after five years add up to a highly flexible package and address all the concerns voiced since the Chancellors announcement last month.”
