Home insurance discount for mortgage

A new mortgage product has been launched, offering customers a discount for taking out a home insurance policy .

Leeds Building Society's best buy three-year fixed mortgage promises a rate of 3.75 per cent until July 2013 and, crucially, includes a 0.24 per cent discount for taking out the organisation's Homecover insurance policy.

Kim Rebecchi, sales and marketing director at Leeds Building Society, explained some of the other benefits of the mortgage .

This best buy product is a fantastic opportunity for those borrowers who wish to take away any uncertainty, on what is usually a household's biggest monthly outgoing, and lock into low fixed repayments.

It provides customers with peace of mind and the security that their monthly payments will remain the same for three years, at a very affordable rate, combined with the flexibility of ten per cent capital repayments each year.

If a repeat of last winter is to be seen at the end of this year, then homeowners will want to make sure they have adequate home insurance cover to protect themselves against damage caused by the cold weather.