The remaining monthly payments are then fixed for up to three or five years. There is no completion fee, a free standard valuation is available up to £335 and 10 per cent capital repayments are allowed each year without penalty.
This is a new and unique range of competitive mortgages that are available up to 90 per cent loan-to-value (LTV).
Kim Rebecchi, Leeds Building Society’s sales and marketing director, said: “The cost of buying a home is not limited to finding a deposit and being able to pay the mortgage. Stamp duty, solicitor’s fees and searches all have to be budgeted for.
“We also know that when people buy a new home, they want to make changes and put their own personal mark on it, and that is why we have launched the unique Welcome Mortgage.
“Customers can choose a 0 per cent interest rate period and pay capital only, for either three or six months. This reduces their outgoings immediately after they move in and gives borrowers the opportunity to decorate, make improvements or buy furniture for their new home. They then pay a fixed monthly payment for the remainder of the product period at a competitive and affordable rate, creating flexibility and certainty at the same time.”
The three-year fixed rate version starts from 3.79 per cent, with three months at 0 per cent, and the five-year fixed rate at 4.23 per cent. Both these products are at broadly the same cost to the borrower when compared to the standard three and five-year fixed rate version at 3.45 per cent and 3.99 per cent respectively.
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