Leeds criteria changes aid interest only borrowers
Improvements to our interest only mortgage range are enabling us to help more under-served borrowers.
We've continued to improve our lending criteria on part and part interest only mortgages and we will now accept sale of property as a repayment strategy up to 75% LTV (loan to value).
There has been strong demand for our award-winning part and part interest only mortgages since their launch in 2015.
The products are available up to 75% LTV, with a maximum of 50% on an interest only basis and the remainder on a capital and repayment basis.
We are unique among interest only lenders in not imposing minimum income requirements and now calculate the minimum equity of £150,000 based on the borrower’s term end position.
“We always try to be responsive to borrowers’ and brokers’ feedback and have kept our criteria under review since we launched part and part interest only mortgages almost a year ago,” said Martin Richardson, our Director of Business Development.
“These latest changes are part of how we’ve further refined and improved criteria since we brought this award-winning product to the market.
“As anticipated, part and part has been particularly popular for remortgages as it offers borrowers currently on full interest only, the flexibility to start paying down their loan in a manageable way.
“Part and part reduces the payment shock of moving to a full repayment mortgage for homeowners who’ve yet to reduce the capital they owe, because of an endowment shortfall, for example.
“It’s also relevant to high net worth borrowers, who are looking to use an interest only mortgage as part of a wider investment strategy, or for home buyers who can expect their future income to rise significantly, such as when they complete professional qualifications.”
As a responsible lender, we assess affordability for all borrowers on the basis of a full capital repayment mortgage.