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.

Interest Only mortgages

We offer a range of both Interest Only and Interest Only Part & Part mortgages, for customers looking to borrow up to either 60% LTV or 75% LTV.

For customers looking to borrow up to 60% LTV:

  • The whole mortgage can be on Interest Only.
  • They can choose to take a Part & Part approach for any combination, e.g. 35% Interest Only, 25% repayment.
  • The sale of the mortgaged property can be used as a repayment strategy as long as we assess that there will be sufficient equity in the property at the end of the term to repay the mortgage and buy another property to live in.

For customers looking to borrow between 61% and 75% LTV:

  • Up to 60% of the value of the property can be borrowed on Interest Only whilst the remaining amount must be on repayment.
  • The sale of the mortgaged property can be used as a repayment strategy as long as we assess that there will be sufficient equity in the property at the end of the term to repay the mortgage and buy another property to live in.
  • No minimum income required.

Which customers may Part & Part be suitable for?

These products may be suitable for a range of borrowers including:

Current Interest Only borrowers

Part & Part allows them to start reducing the capital they owe, without the payment shock of moving to a full repayment mortgage.

'Endowment shortfall' borrowers

These borrowers may be facing a shortfall on their endowment. Part & Part allows them to cover the shortfall and convert a portion of their mortgage to capital repayment.

Asset rich borrowers

Asset rich customers who may be looking to make more of their current investments.

Repayment strategies

All Interest Only applicants will need to have a credible repayment strategy in place to repay the capital at the end of their mortgage term. All repayment strategies will be subject to approval by our underwriters.

Find out more information on Interest Only repayment strategies.

 

Interest Only 2 year Fixed Rate

Initial rate fixed up to and inc. 31/01/19Then the Society's SVR thereafter, (currently)Overall cost for comparison (APRC)Max LTVProduct Arrangement Fee
1.50% 5.44%4.9%60%£1999 View
Max loan amount £1,250,000
1.80% 5.44%4.9%60%£999 View
Max loan amount £1,250,000
1.94% 5.44%4.9%60%£199 View
Fees Assisted / Max loan amount £1,250,000

Initial rate fixed up to and inc. 30/11/18Then the Society's SVR thereafter, (currently)Overall cost for comparison (APRC)Max LTVProduct Arrangement Fee
2.25%†5.44%5.1%60%£0 View
Remortgage Only / Fee Saver / Max loan amount £1,250,000

Interest Only 2 year Fixed Rate - Part and Part

Initial rate fixed up to and inc. 31/01/19Then the Society's SVR thereafter, (currently)Overall cost for comparison (APRC)Max LTVProduct Arrangement Fee
1.60% 5.44%4.9%75%£1999 View
Max loan amount £1,250,000 up to 65% LTV or £1,000,000 up to 75% LTV
1.90% 5.44%4.9%75%£999 View
Max loan amount £1,250,000 up to 65% LTV or £1,000,000 up to 75% LTV
2.04% 5.44%4.9%75%£199 View
Fees Assisted / Max loan amount £1,250,000 up to 65% LTV or £1,000,000 up to 75% LTV

Initial rate fixed up to and inc. 30/11/18Then the Society's SVR thereafter, (currently)Overall cost for comparison (APRC)Max LTVProduct Arrangement Fee
2.30%†5.44%5.0%75%£0 View
Remortgage Only / Fee Saver / Max loan amount £1,250,000 up to 65% LTV or £1,000,000 up to 75% LTV
RATES CORRECT AS AT 11 NOV 2016

Warning: Your home may be repossessed if you do not keep up repayments on your mortgage.

Representative Example

A mortgage of £100,000.00 payable over 25 years initially on a fixed rate for 2 years at 2.25% and then on our current Standard Variable Rate of 5.44% (variable) for the remaining 23 years would require 24 monthly payments of £187.50 and 276 monthly payments of £453.33.

The total amount payable would be £229,655.00 made up of the loan amount plus interest of £129,620.00 and booking fee £0, product arrangement fee £0, valuation fee £0.

The overall cost for comparison is 5.1% APRC representative.

This representative example assumes a mortgage completion date on the 1st day of a calendar month.

The above representative example is for illustration purposes only and may vary depending on your personal circumstances.

Unless otherwise indicated, these products are only available for house purchases or for customers remortgaging from another lender. A product arrangement fee is payable on application but is refundable should the mortgage not complete. A redemption fee of £199 will apply.

  • No Higher Lending Charge.
  • 10% capital repayments are allowed each year without incurring an Early Repayment Charge.
  • For fixed rates up to and including 31/01/19, Tapered Early Repayment Charges apply up to and including 31 Jan 2019.
  • For fixed rates up to and including 30/11/18, Tapered Early Repayment Charges apply up to and including 30 Nov 2018.
  • Free Standard valuation up to £999.
  • Fees assisted legal services for standard remortgages.
  • Interest calculated daily.
  • Available where part or all of the mortgage is on Interest Only. Sale of the mortgaged property can be used as a repayment strategy but equity must make downsizing plausible at the end of the mortgage term.

† Available for remortgages only.

Interest Only 5 year Fixed Rate

Initial rate fixed up to and inc. 31/01/22Then the Society's SVR thereafter, (currently)Overall cost for comparison (APRC)Max LTVProduct Arrangement Fee
2.20% 5.44%4.3%60%£1999 View
Max loan amount £1,250,000
2.45% 5.44%4.4%60%£999 View
Max loan amount £1,250,000

Initial rate fixed up to and inc. 30/11/21Then the Society's SVR thereafter, (currently)Overall cost for comparison (APRC)Max LTVProduct Arrangement Fee
2.79%†5.44%4.7%60%£0 View
Remortgage Only / Fee Saver / Max loan amount £1,250,000

Interest Only 5 year Fixed Rate - Part and Part

Initial rate fixed up to and inc. 31/01/22Then the Society's SVR thereafter, (currently)Overall cost for comparison (APRC)Max LTVProduct Arrangement Fee
2.40% 5.44%4.3%75%£1999 View
Max loan amount £1,250,000 up to 65% LTV or £1,000,000 up to 75% LTV
2.50% 5.44%4.4%75%£999 View
Max loan amount £1,250,000 up to 65% LTV or £1,000,000 up to 75% LTV

Initial rate fixed up to and inc. 30/11/21Then the Society's SVR thereafter, (currently)Overall cost for comparison (APRC)Max LTVProduct Arrangement Fee
2.99%†5.44%4.5%75%£0 View
Remortgage Only / Fee Saver / Max loan amount £1,250,000 up to 65% LTV or £1,000,000 up to 75% LTV
RATES CORRECT AS AT 04 NOV 2016

Warning: Your home may be repossessed if you do not keep up repayments on your mortgage.

Representative Example

A mortgage of £120,000.00 payable over 25 years initially on a fixed rate for 5 years at 2.79% and then on our current Standard Variable Rate of 5.44% (variable) for the remaining 20 years would require 60 monthly payments of £279.00 and 240 monthly payments of £544.00.

The total amount payable would be £267,335.00 made up of the loan amount plus interest of £147,300.00 and booking fee £0, product arrangement fee £0, valuation fee £0.

The overall cost for comparison is 4.7% APRC representative.

This representative example assumes a mortgage completion date on the 1st day of a calendar month.

The above representative example is for illustration purposes only and may vary depending on your personal circumstances.

Unless otherwise indicated, these products are only available for house purchases or for customers remortgaging from another lender. A product arrangement fee is payable on application but is refundable should the mortgage not complete. A redemption fee of £199 will apply.

  • No Higher Lending Charge.
  • 10% capital repayments are allowed each year without incurring an Early Repayment Charge.
  • For fixed rates up to and including 31/01/2022, Tapered Early Repayment Charges apply up to and including 31 Jan 2022.
  • For fixed rates up to and including 30/11/2021, Tapered Early Repayment Charges apply up to and including 30 Nov 2021.
  • Free Standard valuation up to £999.
  • Fees assisted legal services for standard remortgages.
  • Interest calculated daily.
  • Available where part or all of the mortgage is on Interest Only. Sale of the mortgaged property can be used as a repayment strategy but equity must make downsizing plausible at the end of the mortgage term.

† Available for remortgages only

Interest Only 2 year Discount Rate

Initial rate variable for the first 2 years, (currently)TermsThen the Society's SVR less 1% discount for 3 years, (currently)Then the Society's SVR thereafter, (currently)Overall cost for comparison (APRC)Max LTVProduct Arrangement Fee
1.55%The Society's SVR less 3.89%4.44%5.44%4.9%60%£999 View
Fees Assisted / Max loan amount £1,250,000

Interest Only 2 year Discounted Rates - Part and Part

Initial rate variable for the first 2 years, (currently)TermsThen the Society's SVR less 1% discount for 3 years, (currently)Then the Society's SVR thereafter, (currently)Overall cost for comparison (APRC)Max LTVProduct Arrangement Fee
1.60% The Society's SVR less 3.84%4.44%5.44%4.7%75%£999 View
Fees Assisted / Max loan amount £1,250,000 up to 65% LTV or £1,000,000 up to 75% LTV
RATES CORRECT AS AT 1 SEP 2016

Warning: Your home may be repossessed if you do not keep up repayments on your mortgage.

Representative Example

A mortgage of £140,000.00 payable over 25 years initially on a 3.89% discount on our current Standard Variable Rate of 5.44% for 2 years and then a 1.00% discount on our current Standard Variable Rate of 5.44% for 3 years and then on our current Standard Variable Rate of 5.44% for the remaining 20 years would require 24 monthly payments of £180.83, 36 monthly payments of £518.00 and 240 monthly payments of £634.67.

The total amount payable would be £316,342.00 made up of the loan amount plus interest of £175,308.00 and booking fee £0, product arrangement fee £999, valuation fee £0.

The overall cost for comparison is 4.9% APRC representative.

This representative example assumes a mortgage completion date on the 1st day of a calendar month.

The above representative example is for illustration purposes only and may vary depending on your personal circumstances.

Unless otherwise indicated, these products are only available for house purchases or for customers remortgaging from another lender. A product arrangement fee is payable on application but is refundable should the mortgage not complete. A redemption fee of £199 will apply.

  • No Higher Lending Charge.
  • 10% capital repayments are allowed each year without incurring an Early Repayment Charge.
  • Tapered Early Repayment Charges applies for the first 2 years.
  • Free Standard valuation up to £560.
  • Fees assisted legal services for standard remortgages.
  • Only available to Interest Only applications.
  • Interest calculated daily.
  • Available where part or all of the mortgage is on Interest Only. Sale of the mortgaged property can be used as a repayment strategy but equity must make downsizing plausible at the end of the mortgage term.

We have developed a set of short, easy to use guides to our criteria. View our criteria guides »

Any questions?

Please contact your nearest Development Manager. Find your nearest Development Manager »

Important Information

Life cover or critical illness cover is not included with this type of mortgage and we would strongly advise applicants to protect their family home by making sure they have enough life cover and critical illness cover to pay off the mortgage and (where applicable) any accrued interest in the event of death or becoming unable to work due to accident or sickness.

A maximum of 60% loan to value (LTV) applies to Leeds Building Society Interest Only mortgages. For applicants intending to repay the mortgage in full through the sale of the mortgaged property, there must be, in the Society's opinion, sufficient equity in the property at the end of the term to repay the mortgage and buy another property to live in.

*Interest only repayment strategy

Before applying for an Interest Only or Part & Part mortgage, a clearly understood and credible repayment strategy must be in place for the Interest Only part of the mortgage. It is the applicants responsibility to ensure that they have sufficient funds to repay the amount borrowed on an Interest Only basis and (where applicable) any accrued interest at the end of the term. This could be using a savings or investment product, such as an endowment, pension or ISA, the sale of the mortgaged property or sale of other properties or a combination of these.

If applicants intend to sell the mortgaged property and this is their main residence, they must ensure that it is likely to provide them with enough funds to repay the loan and (where applicable) any accrued interest and allow them to buy another cheaper property.

Whichever option you choose, applicants must review their plans regularly to make sure they are on track to pay off the mortgage and (where applicable) any accrued interest on or before the end of the mortgage term and make changes if necessary.

At some point during the term of the mortgage we will contact the borrower to check that their repayment strategy is still in place and that it is still reasonable to expect that the repayment strategy has the potential to repay the amount borrowed and (if applicable) any interest accrued under the mortgage at the end of the term.