Leeds BS offers five-year fixed-rate at 5.84%

Leeds Building Society has today reduced the interest rate on its five-year fixed-rate home loan from 5.99% to 5.84%.

The lender has also knocked £500 off the completion fee, reducing it to £999.

However, the rate reduction only applies to customers who sign up for the society’s Homecover insurance through to 31 August 2013.

Those who prefer another provider will have to pay an additional 0.24%.

Applicants are limited to a loan-to-value ratio of up to 80% and the maximum value of the loan is £250,000.

There is no higher lending charge and 10% capital repayments are allowed each year, without penalty.

Early repayment charges apply: 5% in the first and second years; 4% in the third year; 3% in the fourth year and 2% in the fifth year.

In related property news, Nationwide has reported a 1.9% drop in house prices during August, taking the annual fall to 10.5%.

The lender also commented that fixed-rate mortgages remain popular with borrowers despite the fact that trackers currently offer better value.

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