New mortgage options in the market for home owners |
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Wed, 05 Oct 2005 18:35
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LONDON: Leeds Building Society has introduced to new mortgage options to its clients -- a two-year fixed rate mortgage with a rate of 4.75 per cent and a three-year option with a 4.79 per cent rate. In addition, there will be fee-free versions, with slightly higher rates of interest, the Society announced.
The Society's product development manager Stuart Fearn said the two-year fixed rates will be available until 31 December 2007. The new options are being made available in the light of the Bank of England's announcement that more and more people are borrowing against their homes.
Fearn said the product has no higher lending charge up to 90 per cent of the value of the property and offers a free valuation worth 335 pounds, unlimited penalty-free capital payments and in-house legal services for mortgage holders.
Meanwhile, in a survey, the Council of Mortgage Lenders found that fixed rate mortgages accounted for 54 per cent of all loans in August, the highest proportion ever since monthly records began in 1998. It said gross mortgage lending rose by 9 per cent to an estimated 27.5 billion pound during the month, from 25.2 billion pounds in July.
The survey also indicated that there was an increase in all types of lending, with remortgaging leading the way -- up by 15 per cent to 11.7 billion pounds in August from 10.2 billion pounds in July. This is the highest level since October 2003.
Lending for house purchase rose by 6 per cent to 12.5 billion pounds during the month, up from 11.8 billion pounds in July. This category of lending accounted for 45 per cent of all lending, but it down from 47 per cent in July.
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Leeds Building Society 