Leeds Building Society is starting the new year with a bang by slashing mortgage rates across its range of products. Effective from Tuesday 2nd January 2025, the building society is reducing rates by up to 0.21%, offering substantial savings for homeowners looking to renew their mortgages, first-time buyers, and brokers alike.
This move comes just ahead of significant changes to the Stamp Duty Land Tax relief, which will see the stamp duty threshold for first-time buyers drop from £425,000 to £300,000, starting from April 1st.
This change will impact around one in five property transactions, according to data from January to September 2024.
The Society’s new rate reductions are a timely measure for first-time buyers and homeowners with expiring fixed-rate deals.
In the first quarter of 2025, nearly 328,000 residential mortgages are set to mature, making these savings particularly welcome for those impacted by the market conditions.
For example, based on a 90% loan-to-value on an average house price of £282,000, a first-time buyer who opts for Leeds’ 2-year fee-free rate of 5.25% will save over £450 annually compared to taking out the equivalent product in January 2024.
Featured mortgage products from Leeds Building Society
Leeds Building Society is offering the following attractive mortgage deals:
5-year fixed rate (Available up to 90% LTV)
- 4.89% (was 4.95%)
- £0 fees
- Free standard valuation up to £999
- Available to first-time buyers only
2-year fixed rate (available up to 85% LTV)
- 4.79% (was 4.99%)
- £0 fees
- Free standard valuation up to £999
- Available to first-time buyers only
2-year fixed rate (available up to 65% LTV)
- 4.15% (was 4.36%)
- £1499 fee
- Free standard valuation up to £999
- Available for both purchase and remortgage
Jonathan Thompson, Senior Product Manager at Leeds Building Society, commented on the rate changes, “As part of our mission to make homeownership more accessible, we are taking purposeful action to support those stepping onto the property ladder or approaching the end of their existing fixed term. These rate reductions will help alleviate financial pressure for households and bring homeownership closer for many.”
Finance expert Rachel Springall from Moneyfacts expressed her approval, noting, “First-time buyers may struggle with large deposits, so it’s encouraging to see competitive mortgage deals launched to support these buyers. The market continues to need more innovation to assist those currently renting and unable to afford their own home.”
David Hollingworth, Associate Director at L&C Mortgages, added, “It’s great to see rate reductions being introduced so early in the year, improving the choice for first-time buyers, home movers, and those remortgaging. As the market remains fast-moving, getting professional advice will continue to be key in securing the best deals.”
david.ryckman @ thelondonpropertynews.co.uk