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Leeds Building Society reduces selected residential fixed rates by up to 0.24%

ended 31. December 2024

Leeds Building Society has today announced it is reducing selected residential fixed rates by up to 0.24% and Interest Only rates by up to 0.15% for existing customers. The lender is also reducing selected residential and Reach fixed rates by up to 0.21% and Interest Only rates by up to 0.15% for new customers. Newspage asked brokers whether this signals the beginning of the mini rate war we had at the start of 2024 and what they are expecting to happen to rates in January 2025 — and whether the stamp duty deadline see lenders compete more aggressively than usual.

8 responses from the Newspage community

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David Stirling
Independent Financial Adviser at Mint Wealth
While we are all thinking about packing away the decorations, Leeds Building Society are thinking about 2025 and getting a march on their competitors. It is anticipated that the New Year will start with a lender rate war as they try to mop up those borrowers trying to get deals completed before the Stamp Duty changes come into effect in April. This should make for an exciting start to 2025 and borrowers should be able to secure some decent rates as a result. Fair play to Leeds for starting the party early.
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Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
These are fairly chunky cuts from the Leeds Building Society and the hope is that other lenders follow their example. A lot of lenders will have an eye on the stamp duty deadline and also their targets for 2025, which could see some decent competition later this week and next. As they recover from their New Year hangovers, borrowers may receive some New Year rate cheer.
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Riz Malik
Independent Financial Adviser at R3 Wealth
Leeds may be trying to get a head start on the January sales but with market movements, don’t be expecting large rate reductions from lenders going forward. As keen as lenders are to start the New Year with a bang, they are still pricing based on market conditions and they are not looking at rosy as we would hope.
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Ben Perks
Managing Director at Orchard Financial Advisers
Leeds are clearly keen to start the New Year on a positive note. They’re first out the blocks in what could be another January rate war. Borrowers will certainly have their fingers crossed.
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Emma Jones
Managing Director at Whenthebanksaysno.co.uk
January 2024 saw lenders shoot out of the blocks and these cuts from Leeds on New Year's Eve may suggest a repeat is on the cards. Lenders often want to start the year with a bit of momentum and borrowers may be set to benefit in the days ahead.
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Craig Fish
Director at Lodestone Mortgages
A positive start to the year, no doubt fuelled by new lending targets and the stamp duty deadline. We can expect to see more reductions from other lenders in the coming days.
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Kundan Bhaduri
Entrepreneur, Investor and Landlord at The Kushman Group
Leeds Building Society’s rate reductions feel less like the opening salvo of a ‘rate war’ and more like a gentle nudge to stay relevant in an increasingly competitive market. A 0.24% cut is hardly earth-shattering, but in a world where every fraction counts, it’s bound to grab some attention. As January approaches, the real question is whether this is just the calm before the storm. With the stamp duty deadline looming like a ticking clock, lenders may well be gearing up for a more aggressive showdown. For brokers, it’s a case of watching the chessboard and moving swiftly when opportunity strikes. While it’s early days to celebrate, reductions like these do offer a glimmer of relief for borrowers. For now, we’ll wait and see if this trickle turns into a full-blown torrent come 2025. Who knows, maybe this is just Leeds warming up for the main event.
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Iain Swatton
Director at Exemplar Financial Services
Leeds Building Society is ending the year with a bang, cutting mortgage rates by up to 0.24% just before the New Year. This early move is not just about grabbing headlines, it’s a welcome dose of positivity for borrowers as we head into 2025. Hopefully, other lenders will take note and join the trend, setting a competitive tone for the year ahead. With mortgage rates becoming more attractive, we could see renewed confidence in the housing market and a great way to start the new year.