Leeds & Holbeck has re-entered the long-term fixed rate mortgage market with a range of portable mortgages over 15, 20 and 25 years.
Available from November 28 2003, at a fixed rate of 5.99%, the products allow borrowers early redemption windows throughout the life of the loan.
This new long term fixed rate product range has been designed specifically to address industry criticism that such products have traditionally been too inflexible and too expensive to be popular.
The rate of 5.99% is set at a time when interest rates are still low but are expected to rise over the next 12 months. Furthermore, the mortgages offer “option windows” to redeem or transfer without penalty after five years and then every two years thereafter.
Key features include 5% capital repayments allowed each year without penalty, interest calculated daily and no higher lending fees.
It also features a tapered early redemption penalty outside of the option windows of six months interest at SVR in years one to five, and three months interest at the SVR rate in years six onwards.
Tony Burdin, head of marketing & PR at Leeds & Holbeck says: “Long term fixed rate mortgages offer customers stability when many commentators are predicting interest rates to rise.
“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. L&H was pleased with the response to its earlier products and believes that there is a market for this type of mortgage in the UK.
“Given that customers can choose to walk away from the deal after just five years, the loan adds up to a highly flexible package and addresses all the concerns some industry specialists have about this length of loan.”