Leeds & Holbeck launches euro-style mortgage

Sunday Herald, The, May 18, 2003

As the debate over the pros and cons of joining the euro rages on, the Leeds & Holbeck Building Society has launched a euro-style, 25- year fixed-rate mortgage which would protect borrowers from excessive rate changes.

One of the major differences between the economies of mainland Europe and the UK lies with our high levels of mortgage debt and our reliance on variable rate or short-term fixed loans.

As a result, the UK population is significantly more vulnerable to interest-rate shocks. Long-term fixes have not proved popular with British borrowers as they tend not to be the cheapest in the market.

However, the new L&H loan is competitive for longer-term deals, even though shorter-term fixes continue to be considerably cheaper, starting at 3.3%. Fixed rate loans over 15 years and 20 years are also available at 5.39%.