New 10 Year Fixed Rate Mortgage From Leeds Building Society

Leeds Building Society have launched a new 10 year fixed rate mortgage product that requires just a 20% deposit.

The new fixed rate mortgage from Leeds has an interest rate of 5.99% fixed until 30 June 2021.

It is the only such mortgage currently available for a 10 year period and available for up to 80% LTV, meaning a maximum deposit required is 20%.

Up to 10% capital repayments are allowed each year without early repayment penalties.

Borrowers can port their mortgage should they move home which providers greater flexibility.

There is no higher lending charge. There is a £199 booking fee and £800 completion fee up to £500,000.

MoneyHighStreet.com comment: As borrowers fear rising interest rates, one way to help get stability with mortgage repayments is to opt for a longer tern fixed rate period, such as this new 10 year offering from Leeds.

Taking a longer term mortgage can also reduce the arrangement fees as these would otherwise have to be paid each time a borrower remortgaged.

That said, currently shorter term fixed rate mortgages or tracker deals will invariably offer lower interest rates, compared with longer term ones. You though need to assess whether you can manage a potentially bigger bill when such a deal runs out or whether you need the peace of mind that a longer term deal brings, albeit at a premium compared with current rates.

If need be, seek professional advice from a mortgage broker to help with your decision.