With the prospect of another increase in the base rate of interest to five per cent by the end of the year, Leeds Building Society has moved to combat fears of another increase with the launch of a new fixed-rate product.
The new mortgage is available at 4.97 per cent over a ten-year period, with a loan-to-value rate of up to 90 per cent and the provision for ten per cent capital repayments each year without penalty.
"With market commentators predicting a further rise in base rate later this year, a ten-year best buy fixed-rate at only 4.97 per cent offers outstanding value," said Stuart Fearn, Leeds' product development manager.
"This product delivers long term peace of mind by providing protection against future interest rate increases. It is clear that customers want to lock in good value in a rising rate environment and this is an ideal opportunity."
Mr Fearn also noted that a fee-free option of the product was also available to those who would have more trouble affording the charges associated with starting or transferring a home purchase loan.To read more about mortgage, click here.
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