Leeds Building Society is launching a new fixed rate mortgage in light of new research which has revealed that fixed rate mortgages accounted for over half of all loans in August this year.
Leeds two-year fixed rate mortgage offers a competitive rate of only 4.75 per cent and capital repayments are allowed at any time without penalty.
Product development manager, Stuart Fearn, said, "We are now offering a two-year fixed rate until 31st December 2007 at only 4.75 per cent, which will prove extremely attractive to customers looking to remortgage or purchase.
"There is no higher lending charge up to 90 per cent loan to value and the product is fully portable, so if customers do wish to move within the two years, they can take this deal with them."
There is also a two-year fee free version of the new mortgage with a rate of 5.25 per cent.
The product has no higher lending charge up to 90 per cent of the value of the property and offers a free valuation worth £335, unlimited penalty-free capital payments and in-house legal services for mortgage holders.
The survey, conducted by the Council of Mortgage Lenders (CML) found that 54 per cent of all borrowing in August consisted of fixed rate mortgages, the highest level since the survey began in 1998.
CML said: "'This probably reflects borrowers taking advantage of lower interest rates and remortgaging into cheaper deals, especially as a large number of people will have been coming to the end of their previous deals."
