Please note: Leeds Building Society only accepts mortgage applications from intermediaries where they are providing an advised sales service, with the exception of Buy to Let & Holiday Let applications. It is the responsibility of the intermediary to ensure that all applicable law including, without limitation, the Financial Conduct Authority rules on advised mortgage sales are complied with including, without limitation, the provision of adequate explanations.

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Second home mortgage range launched by Leeds

Leeds Building Society has responded to borrower and broker demand by introducing a new range of mortgages for second homes.

“We were receiving applications from an increasing number of home owners wanting to buy a second property,” said Jaedon Green, Leeds Building Society’s Director of Product and Distribution.

“Building on our extensive experience in Holiday Let, our new range provides an ideal complement for those seeking a second home for their own use.

“Whether that’s buying a home for their children while at university§, or because they work a long distance from home and need somewhere to stay during the week – purchase can make better financial sense than paying out rent in those circumstances.

“Some people are buying homes for their parents or other elderly relatives, perhaps closer to them so they can help with care as they grow older.

“We’ve responded to this demand with a new range of products for this under-served market, with two and five year fixed rate deals at 65%, 75% and 85% LTV (loan to value) for capital and interest mortgages.

“In addition to traditional repayment mortgages, we’ll lend up to 70% LTV on second homes on an interest only basis, or up to 75% LTV on part and part.”

Highlights from the new range include:

  • 60% two year fixed rate available up to 75% LTV
  • 35% five year fixed rate available up to 75% LTV

Key Features

Second Home two year fixed rate mortgage at 1.60% up to and including 31st August 2019:

  • 60% fixed up tp and including 31st August 2019
  • Available up to 75% LTV
  • Free standard valuation on properties worth up to £1m
  • Maximum loan of £1.25m up to 65% LTV, or £1m up to 75% LTV
  • Maximum interest only element is 70% LTV
  • Sale of property accepted as a repayment strategy, subject to criteria
  • Up to 10% capital repayments allowed each year

Second Home five year fixed rate mortgage at 2.35% up to and including 31st August 2022:

      • 35% fixed up top and including 31st August 2022
      • Available up to 75% LTV
      • Free standard valuation on properties worth up to £500,000
      • Maximum loan of £1.25m up to 65% LTV, or £1m up to 75% LTV
      • Maximum interest only element is 70% LTV
      • Sale of property accepted as a repayment strategy, subject to criteria
      • Up to 10% capital repayments allowed each year
      • Tapered Early Redemption Charges (5/5/4/3/2%
§At the start of the 2016/2017 academic year, average university rent across all UK cities was £134.23 per week (£581 per calendar month), bearing in mind geographic variances, with £107.73 the average weekly rent in Wales and £181.62 the average in London. (From Pads for Students accommodation search engine).