More interest only mortgage choice at all loan sizes
Leeds Building Society has added to its range of interest only mortgages with new deals for larger loans of up to £1.25m*.
These include two competitive new short term fixed rate deals:
- 60% two year interest only mortgage available up to 50% LTV (loan to value)
- 70% two year fixed rate part and part interest only mortgage available up to 75% LTV
All these new products come with a free valuation as well as fees assisted legal services for standard remortgages. Each has a £1,999 fee.
In May 2015 the Society added to its existing interest only mortgages available up to 50% LTV, by introducing part and part mortgages up to 75% LTV, with up to 50% LTV on interest only and the remainder on a capital and repayment basis.
Part and part mortgages offer borrowers more flexibility in reducing their mortgage debt in a manageable way, when they have an endowment shortfall, for example.
These new products are also likely to appeal to high net worth borrowers wishing 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.
“It’s now a year since we launched our part and part mortgages,” said Jaedon Green, Leeds Building Society’s Director of Product and Distribution.
“These won an industry award for product innovation and we continue to improve our criteria. We listened to feedback from intermediaries and improved lending criteria on part and part to accept sale of property as a repayment strategy for the interest only portion of the mortgage.
“The range is suitable for remortgage and home purchase and offers a choice of fee and incentive combinations.
“As anticipated when we launched part and part, we’ve seen particularly strong demand for remortgages from homeowners with interest only mortgages.
“Part and part can help borrowers who’ve yet to make any progress paying down their original interest only loan to start reducing their debt without the payment shock of switching to a full repayment mortgage.”
Leeds Building Society is unique among interest only lenders in not imposing minimum income requirements and calculates the minimum equity of £150,000 based on the borrower’s term end position.
As a responsible lender, Leeds Building Society assesses affordability for all borrowers on the basis of a full capital repayment mortgage.
*Part and part mortgages of up to £1.25m up to 65% LTV, or up to £1m up to 75% LTV.
To discuss a new case with one of our mortgage development team, mortgage introducers should go to www.leedsintroducer.co.uk to find details of their nearest Business Development contact.
Leeds Building Society received the ‘Innovation Award (Lenders)’ at the Mortgage Finance Gazette Awards 2016, the third consecutive year the Society has won this category, as well as the award for ‘Product Innovation (Lenders)’.
The Society also has been named ‘Best Regular Savings Account Provider’ for the second consecutive year by independent consumer advice website Savings Champion.
Leeds Building Society has 67 branches throughout the UK, Gibraltar and Ireland and assets of £13.5bn (at 31st December 2015). The Society has operated from the centre of Leeds since 1886.