View more on these topics

Defaqto on Leeds 5-Year 5.79% Fixed Intermediary

View of Defaqto insight analyst for banking David Black

Black says: “The latest inflation figures show annual inflation running at 4.4 per cent for Consumer Price Index and 5.5 per cent for Retail Price Index. These disclosures will stoke continued media attention on the likelihood of future increases in the bank base rate. Against this backdrop it really is no surprise that there is a continuing surge of interest in opting for a fixed rate mortgage. However, for borrowers enjoying a competitive standard variable rate, it remains something of a guessing game as to whether and when the optimum time may be to remortgage.

“The average fixed rate mortgage now offers a maximum LTV of 78.1 per cent. This is slowly creeping up from its nadir of 74.6 per cent back in March 2009, but is still well below the 90 to 91 per cent average that prevailed in 2007. It is always good to see the launch of higher LTV products, but the fact remains that they charge a significant premium rate above that available from lower LTV equivalents.

“The Leeds Building Society five-year fixed mortgage is up against an average rate in the market of 5.96 per cent with an £850 fee for five-year fixed rates offering a maximum LTV of 85 per cent. It is also worth noting that Leeds offers direct applicants a rate of 5.73 per cent or 5.49 per cent if they take out buildings and contents insurance through the Society. These rates are fixed until April 30,2016 with the same fee as its intermediary product.

“The most competitive products for 5 year fixed rate mortgages at 85 per cent LTV are currently Nottingham Building Society, offering a 5.19% rate to direct applicants with a £995 fee, free valuation, and free legal fees for remortgages. Cambridge Building Society has a 5.39 per cent direct rate with a £999 fee, free valuation and free legal fees for remortgages. Accord Mortgages has a 5.74 per cent fixed rate with a £1,995 fee available through intermediaries.”



Barclays tops regulator list with 276,000 complaints

Barclays Bank received more complaints than any other financial institution during the second half of last year, with more than 276,000 new complaints. The FSA’s complaint figures, published last week, provides data for firms that reported 500 grievances or more over the six-month period between July and December 2010. The figures show Barclays received a […]


Govt’s free advice service launches today

The free advice service created by the Government, the Money Advice Service, has launched today. People can get advice online, over the phone and face-to-face, throughout the country from one of the service’s 100 advisers. Later this year, the Money Advice Service will launch an online health check, which will provide a personal action plan […]

Power tools

Uncertainty still shrouds the RDR and segmenting your client base is a complex exercise. This is where technology can greatly enhance an IFA’s productivity, making choosing the right tools paramount


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm