Leek United launches fixed rate mortgages with interest only, cashback and no fee options
06 February 2019
Leek United has launched a new suite of mortgages including fixed rates with interest only, cashback and no fees options as well as buy to let discounts and mortgages with no ERCs.
Their new interest only 2-year fixed rate has been launched following feedback from brokers who were keen for fixed rate interest only mortgages to be available in the market to satisfy a growing demand. With discount interest rates starting at just 1.99% with a fee, or 2.30% without, and a maximum LTV of 75% this is expected to be a popular choice with intermediaries.
Another new set of mortgages with a 95% maximum LTV are introduced including a 2-year and 5-year fixed rates with no fee and £500 cashback, as well as free valuations on all mortgages.
The new Leek United mortgages range also includes options for buy to let landlords with fixed rate and discounted products, including first-time and non-homeowners landlords. The Leek also offer mortgages for holiday homes and second homes
The Leek are one of the few lenders to offer mortgages up to 95% for new builds and for first time buyers there are Help to Buy options too. Every mortgage application is assessed individually and there is no credit scoring.
Lisa Buckley, the Society’s Head of Marketing and Mortgage Sales, said: “We’re delighted to introduce this new range of innovative mortgages. We have listened to our broker partners and their desire to write more business with us which is very important to the intermediary team. We’ve been highly responsive to the needs of brokers and I’m sure the new fixed rate interest only product will prove to be a hit.
“But we’ve also continued to improve opportunities to help brokers with buy to let landlord products which are still proving popular. We’ve also introduced new products to help first time buyers get their new home and start their journey on the housing ladder.
”We’re delighted to have had so much positive feedback from our introducers and look forward to helping them develop more business as we continue to provide a first class service and exciting new products.”
Recently the Leek introduced an intermediary online affordability calculator for residential mortgages. They also won UK’s Best Variable Rate Mortgage Lender in the 21st annual Personal Finance Awards and were Highly Commended in the First-time Buyer Mortgage Provider category in the 2018 Moneynet awards.
Representative Example (based on a house purchase):
The Annual Percentage Rate of Interest (APR) varies with the circumstances of each mortgage. Here is a representative example of a loan secured on your main residential property: A mortgage of £163,500.00 on a capital and interest (repayment) basis payable over 25 years initially on a fixed rate for 2 years fixed at 3.09% and then on our Standard Variable Rate (SVR) of 5.69% (variable) for the remaining 23 years you would pay:
1 monthly repayment of £13.84, followed by
24 monthly repayments of £781.06, followed by
276 monthly repayments of £1,000.67
The total amount payable would be £295,084.20 made up of the loan amount of £163,500.00 plus interest (£131,444.20) a funds transfer fee of £20 and legal fee of £120. The overall cost for comparison is 5.2% APR representative.
Please note: the example above is for a residential property purchase only and assumes a payment date of 1st of the month. If you choose to pay your mortgage later in the month this will affect payments and could result in a higher APR. For product transfers, re-arrangement and additional borrowing applications, certain fees do not apply. Please speak to your mortgage adviser for further details.
