Affordable mortgages still available

There is no doubt that it would be easy to draw the conclusion that the ‘credit crunch' is just another phrase for ‘no affordable mortgages available'.

With the big banks being urged to start lending to each other, the Bank of England cutting base rate and many market experts predicting huge payment shocks for borrowers coming to the end of a fixed rate deal and a mortgage shortfall, you might assume that there are no organisations offering mortgages.

However, as Karen Wint, General Manager Marketing & Customer Services at Leeds Building Society explains, it is not all gloom and doom for homeowners. Karen says, "Over the last two years virtually all our net lending has been funded by our investors and, as a result, we are much less exposed to the liquidity issues in the market than many banks and other financial organisations. We can, therefore, have a consistently competitive mortgage range.

"We have consistently offered a wide range of mortgages to suit a variety of borrower needs and we are still very much in the market with mortgage rates well below 6%. For example, we have a 2-year fixed rate mortgage at only 5.69%, with no higher lending charge and 10% capital repayments allowed each year.

"We know that many customers like the ability to budget through guaranteed monthly payments and this is particularly pertinent in these uncertain times. With many mortgage customers coming out of a fixed rate in 2008, the opportunity to fix the cost of the biggest monthly outgoing will be welcomed as households look to control their expenditure.

"Furthermore, we have some fee free or fees assisted deals for customers who require help with up front costs. Additional discounts of 0.24% are also available for taking the Society's Homecover insurance."

For more information, visit leedsbuildingsociety.co.uk.