Spotlight On: Leeds' discount buy-to-let mortgage

The deal

Leeds Building Society is offering a two-year discount buy-to-let loan at 4.44 per cent available to those with a deposit of at least 30 per cent.

The good points

The deal is flexible in that it allows borrowers to repay up to 10 per cent of the total borrowed each year without penalty. What's more, there is no higher lending charge.

The bad points

There are two fees, which is at least one too many. First borrowers have to pay a £199 booking fee and then they'll be charged an £800 completion fee. What's the second fee for?

The Leeds presumably wants to make up for the revenue it loses by offering this mortgage with a 1.55 per cent discount on the standard buy-to-let variable rate.

Conclusion

Apart from the double fees, the rate is competitive, which could make the mortgage a good deal for existing landlords.

Using the option of paying off 10 per cent of the loan each year sounds like a good idea if you can manage it. Doing so could help avoid falling into the danger of being unable to afford to sell because of a falling market.