The mutual now offers two-year fixed-rate mortgages at 75% LTV at 5.23%, with a £999 fee and two-year fixed-rate loans at 80% LTV at 5.60%, with a £999 fee.  

The move comes after the Bank of England’s Monetary Policy Committee held the base rate at 5.25% yesterday, as it did in September.    

Although the rate sits at a 15-year high, lenders are betting that the Bank is at the end of its rate-raising cycle, which has seen it lift the base rate 14 times since December 2021 from a historic low of 0.1%.     

Leeds Building Society senior mortgage manager Sean Hanson says: “The Bank of England’s decision yesterday to hold interest rates will come as good news for homeowners and those looking to step onto the property ladder.  

“Despite rates staying flat, we are pleased to be able to make further rate reductions to support first-time buyers and borrowers who are coming towards the end of their current mortgage term.”