One-year mortgage unveiled by building society

A new mortgage product has been unveiled by Leeds Building Society that could help homeowners deal with debt management.

The one-year fixed-rate homeowner loan is set at 3.79 per cent for the first 12 months, after which it reverts to 2.5 per cent above the Bank of England base rate of interest.

It “delivers an excellent combination of fixed and tracker-rate features”, according to director of sales and marketing Kim Rebecchi.

She explained that clients can also benefit from making ten per cent capital repayments with no penalty, something that could allow borrowers to work towards becoming debt free.

“I would urge customers to act quickly to avoid disappointment,” she remarked, as the deal is expected to become “extremely” popular.

Meanwhile, the recent Bank of England base rate cut prompted several lenders, such as Lloyds TSB and Cheltenham & Gloucester, to announce that their tracker and variable-rate mortgage borrowers will benefit from the reduction.

By Jamie Price