Leeds Building Society Tracker Mortgage

djb999

Hi,

I took out my first mortgage last year with Leeds b/society. It was a self cert tracker interest only mortgage with a 2 year fix of 0.5% above base rate. Last June the interest rate was 6% but now with all the subsequent bank of england cuts it's only 1.5%. We've read all the literature from the leeds and we can see nothing about a collar so do we assume that we are getting the benefits from all the interest rate cuts? Also, I would have thought the leeds would have written to us about all this but we have an annual review in march so i assume they will then? I want the money that I hope we're saving to go towards the mortgage as only on interst only at the moment but if I did want the money how do you go about organising that?

Many thanks ,
deb

martinman3

AFAIK Leeds BS only recalculate monthly payments at the annual review or if you ring up and ask them to.

As the rate has fallen any excess you are paying is being treated as an overpayment and I assume would reduce the mortgage balance at the annual review.

see http://forums.moneysavingexpert.com/showpost.html?p=16478113&postcount=17