First Help to Buy 10 year fixed rate

Help to Buy mortgages with an introductory 0% rate and fixed terms up to 10 years are being launched by Leeds Building Society in partnership with Barratt Developments.

The Society is continuing to innovate in the mortgage market with the only 10 year fixed rate Help to Buy Equity mortgage currently available – as well as Help to Buy versions of its Welcome Mortgage, which allows borrowers to pay 0% interest for up to six months at the start of their mortgage.

These deals include the only 10 year fixed rate HTB mortgage currently on the market, at 4.99%, plus:

– A 10 year fixed rate HTB version of the Society’s award-winning Welcome Mortgage, which gives borrowers the choice of paying 0% interest for either the first three months or six months
– A five year fixed rate HTB version of the Welcome Mortgage, with the choice of paying 0% interest for either the first three months or six months
– A two year fixed rate HTB version of the Welcome Mortgage, paying 0% interest for the first three months

Martin Richardson, Leeds Building Society’s General Manager – Business Development, said:

“We have seen strong demand for our Help to Buy mortgages since these were launched last summer.”

“We’re delighted to be able to combine what Help to Buy offers with the unique features of our award-winning Welcome Mortgage, in association with Barratt Developments, to give borrowers even more choice when buying a new build home.

“The cost of an HTB Welcome Mortgage is in line with our standard HTB mortgages¹ but gives the borrower smaller repayments in the first months as they settle into their new home, freeing up cash for them to personalise it and make it feel their own.

“Borrowers have the security of fixing their monthly repayments for a term to suit them and from the start also are paying the capital and reducing their total loan.”

Adrian MacDiarmid, Head of Mortgage Lender Relations at Barratt Development plc, said:

“We’re delighted to join forces with Leeds Building Society to offer such an innovative package to our customers on an exclusive basis.

“Homebuyers often find the first few months after buying a home the most financially-challenging with, for example, the need for new furniture – so the idea of a short interest-free period is very attractive, as is the peace of mind that the unique fixed 10 year option provides.”

Courtesy of Financial Adviser

Posted on May 7, 2014 by Peter Marriott, in: Industry posts

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