Cheap fixes from Leeds & Holbeck

L&H said customers wanting to borrow up to 95 per cent of their property value would be the main beneficiaries from this rate.

There is no higher lending charge up to 90 per cent LTV and no lock-in during or after the end of the fixed rate period. There is a fee of £495 which can be added to the loan at completion.

The Society will also offer a ‘fee-free’ three-year fixed rate at 5.29 per cent product, up to 95 per cent LTV. It includes free use of the Society’s legal service for customers who are remortgaging.

Karen Wint, head of marketing at L&H, said “Market sentiment on interest rates is changing and this means that we are now in a position to offer customers fixed rate mortgages at under 5 per cent.

“This product looks like it will be the lowest three-year rate on the market and it complements the best buy five-year fixed rate mortgage at 4.95 per cent we launched last week.

“With interest rates at this level it really is a good time for customers thinking about remortgaging or buying a new house to secure a low repayment for the next three years.”

Roy New, sole broker, said: “It sounds like a good rate but one thing I’ve noticed is that the arrangement fees charged by lenders are getting higher. Is this to cover compliance?”