Customers wanting to borrow up to 95% of their property value will benefit from this rate. There is no higher lending charge up to 90% loan to value 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 loan at completion.
The Society will also offer a 'fee-free' 3 year fixed rate at 5.29%, also up to 95% loan to value. It includes free use of the Society's legal service for customers who are remortgaging.
Karen Wint, Head of Marketing at Leeds & Holbeck Building Society, 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%. This product looks like it will be the lowest three year rate on the market and it complements the best buy 5 year fixed rate mortgage at 4.95% 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."
