Leeds Building Society kicks off the new year with mortgage rate improvements

From Tuesday 2^nd January 2025, Leeds Building Society will make reductions of up to 0.21% on products across its mortgage range with the aim of helping its members make savings on their monthly mortgage payments.

Supporting brokers, homeowners who are looking to renew their mortgage, and first-time buyers alike, the changes will come as good news to many at the start of the new year.

The Society has made these price improvements ahead of the removal of stamp duty land tax relief coming into effect from April 1^st which will mean the stamp duty threshold for first-time buyers will drop to £300,000 from £425,000, affecting approximately one in five purchases, based on data from Jan – Sept 2024.

This is the latest action from Leeds to put homeownership within closer reach of more people.

For existing mortgage holders, the Society is making rate reductions of up to 0.21%. Data shows that in the first quarter of 2025, there will be nearly 328,000 residential mortgages maturating across the market, so these rate reductions will come as welcome news for those impacted.

Based on 90% loan on an average house price of £282,000, a first-time buyer taking Leeds’ 2-year fee-free rate of 5.25% would save over £450 per year compared to taking the equivalent product in January 2024.

Featured products:

5 Year Fixed Rate – Available up to 90% LTV

• Part of Leeds Building Society’s Income Plus range available to first time buyers only
• Fixed rate of 4.89% (was 4.95%)
• £0 fees
• Free standard valuation up to £999

2 Year Fixed Rate – Available up to 85% LTV

• Available to first time buyers only
• Fixed rate of 4.79% (was 4.99%)
• £0 fees
• Free standard valuation up to £999

2 Year Fixed Rate – Available up to 65% LTV

• Available for purchase and remortage
• Fixed rate of 4.15% (was 4.36%)
• £1499 fee
• Free standard valuation up to £999

Jonathan Thompson, Senior Product Manager at Leeds Building Society, said, “As part of out mission of putting homeownership within reach of more people, we have decided to start the year by making purposeful action to help those stepping onto the property ladder or coming to the end of their existing fixed term.

“The reductions we have made on rates across our mortgage product range will support more people to make their homeownership dreams a reality, and will take financial pressure off households.

“In 2024 the mortgage market was constrained due to the ongoing pressure of the increasing cost of living, but as a lender we want to play our part to try to overcome the hurdles people face and help more people into homeownership.”

Rachel Springall, Finance Expert at Moneyfacts, said, “First-time buyers may well be struggling to amass a large enough deposit to get their foot onto the property ladder, so it’s great to see competitive deals launched onto the market to try and support these buyers.

“The market could always do with more product innovation to help those struggling to get a mortgage as those stuck paying rent may feel their homeownership dreams are scuppered because of the lack of affordable housing, which will take time to improve.

“As we move into 2025, it will be interesting to see how lenders will balance supporting their existing customers and enticing new business as the future of interest rates remains unpredictable.”

David Hollingworth, Associate Director at L&C Mortgages, added, “With the rate outlook still carrying an element of uncertainty borrowers will need to keep on top of their mortgage costs.

“Lenders competed hard throughout 2024 and there’s nothing to suggest that will change in 2025.  It’s therefore encouraging to see these rate reductions being made so early in the year, improving the choice for first time buyers, homemovers and those remortgaging alike.

“The market is likely to be just as fast moving this year, so advice will continue to play a crucial role for customers looking to target the best deals for them.”