Press
Leeds raises offset variable mortgage to 80% LTV
by Joy Dunbar
FinancialAdviser 29th October 2009
Leeds Building Society has increased the loan-to-value requirement on its offset variable rate account from 60 per cent to 80 per cent.
There is no higher lending charge and unlimited capital repayments are allowed at any time and without penalty.
Kim Rebecchi, director of sales and marketing, said: "The feedback we have received from our intermediary colleagues is that clients are looking for higher loan-to-value options and that is why we have increased the LTV on our variable offset to 80 per cent.
"Offsetting can save clients interest on their mortgages, enabling them to pay it off quicker and provide a higher tax efficient equivalent savings rate compared to a normal investment product. Savings are also kept in a completely separate account, so there is no need for a fundamental re-organisation of finances, and clients have unlimited access to them at any time, providing outstanding flexibility and excellent peace of mind."
James Carter, principle of London-based Independent James', said: "This really is a positive move as competition in the offset market at 80 per cent LTV is minimal.
"Any product competition at higher LTV's should be applauded and as a staunch supporter of offset this is particularly encouraging."
Earlier this year Leeds Building Society saw its profit decline by £9.7m due to the levy imposed by the Financial Services Compensation Scheme.
For full year to 31 December last year, the lender reported a profit of £30m but with the FSCS scheme taken into account, this was reduced to £20.3m.