Leeds 3yr fixed mortgage - 5.9%

martinman3 · 18 June 2008 at 2:29PM

Well, I just rang up Leeds Building Society to find out how the overpayments are handled.

You can overpay each month so long as the total in a year that you overpay is less than 10% of the capital, any more than that and you pay a 4%/3%/2% redemption charge. When the interest payments are reviewed annually on 1st Feb they add up the overpayments and, they take into account when they were paid and reduce the capital. When I asked the adviser wouldn't it be better to put the overpayments into a savings account and overpay just before 1st Feb he said overpaying regularly would be better for you.
From this I can gather that they only ever recalculate the outstanding mortgage balance once a year on 31st Jan/1st Feb and interest on overpayments in previous year is then taken into account.

This product disappears at 5.00pm tomorrow Thurs 19th June.

Application letter must be sent first class today or faxed.

These are the branches in the South if it helps. http://www.leedsbuildingsociety.co.uk/contact/branch_south.html

GemmaC · 18 June 2008 at 3:58PM

Thank you - that's really nice of you to call and to clarify this. I've also noticed it says on the details they have faxed me through that if you pay a lump sum of £1000 or more it is taken into account immediately and the interest is adjusted, rather than at the of the year on the single date.

I called and confirmed this and was told yes - although she had to go and check with someone. Also I was told it's ok to fax the form first thing tomorrow morning - she said as long as they have that and the valuation fee they can hold the rate.

For us, at the moment, if might be looking like the best option. I hate all these fees but it seems there's no escaping them unless you go on a higher rate - and then it doesn't work out economical to do so.

Also they are charging £250 for legal stuff - does this sound excessive?

otb666 · 18 June 2008 at 5:59PM

i didnt know ltv either--as there was a exact copy of our hse for sale 250 i said 230k-however valuation came in at 210k?-so the product i had wanted for 75%ltv didnt apply-as we wanted to borrow 170k our ltv was 80-i had however put on the application to go wth the higher one if valuation came in lower which is what ybs did- so we had 5.79 rate instead of 5.49 but whilst this was going on ybs had increased anyway-but we still got 5.79 on the old product 95%ltv which is still cheaper than their current rates on their 75%ltv- i thinks rates and prices are changing so quickly any losses will come out as gains as long as you get the ball rolling