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Leeds launches range of two and five year products for the under-served Interest Only market

Leeds Building Society has unveiled new Interest Only two and five year fee assisted fixed rate deals available up to 50% loan to value (LTV) at rates of 2.49% and 3.19% respectively.

These products offer free standard valuations up to £335 and fees assisted legal services for standard remortgages. All the offers have fees of only £199. Customers can make 10% capital repayments each year without penalty.

The Society is also launching a fee assisted two year discount rate deal up to 50% LTV, at a current rate of 2.30%. This again comes with a free standard valuation up to £335 and fees assisted legal services for standard remortgages.

"Our new range of products is designed to support homebuyers and remortgagors looking to borrow on an Interest Only basis and supports under-served customers in this market, who use 'Sale of Property' as their intended repayment vehicle.

"We already offer Interest Only up to 50% LTV, accepting various repayment vehicles. However, not all Interest Only mortgage providers accept Sale of Property as a repayment vehicle," said Martin Richardson, Leeds Building Society's General Manager – Business Development.

"We've reviewed our range of competitive two and five year deals to offer borrowers an additional range of benefits including low fees, free valuations and fees assisted legal services.

"These offers provide a fantastic opportunity for those customers who wish to lock into the certainty of low fixed repayments. This is combined with the flexibility of 10% capital repayments each year at a very affordable rate."

Ends

Notes to Editors

Key Features

Interest Only Fee Assisted 2 Year Fixed Rate up to and including 31 January 2017

  • 2.49% available up to 50% LTV
  • No Higher Lending Charge
  • £199 Booking Fee
  • No Arrangement Fee
  • Free standard valuation up to £335
  • Fees assisted in-house legal services for standard re-mortgages
  • 10% capital repayments are allowed each year without penalty
  • Tapered early repayment charges of 3/2% of the amount redeemed
  • Maximum loan of £500,000
  • Interest is calculated daily
  • Sale of Property is an acceptable repayment vehicle, subject to criteria

Interest Only Fee Assisted 5 Year Fixed Rate up to and including 31 January 2020

  • 3.19% available up to 50% LTV
  • No Higher Lending Charge
  • £199 Booking Fee
  • No Arrangement Fee
  • Free standard valuation up to £335
  • Fees assisted in-house legal services for standard re-mortgages
  • 10% capital repayments are allowed each year without penalty
  • Tapered early repayment charges of 5/5/4/3/2% of the amount redeemed
  • Maximum loan of £500,000
  • Interest is calculated daily
  • Sale of Property is an acceptable repayment vehicle, subject to criteria

Interest Only Fee Assisted 2 Year Discount Rate

  • Fee Assisted 2 Year 3.39% Discount (current rate 2.30%) available up to 50% LTV
  • No Higher Lending Charge
  • £199 Booking Fee
  • No Arrangement Fee
  • Free standard valuation up to £335
  • Fees assisted in-house legal services for standard re-mortgages
  • 10% capital repayments are allowed each year without penalty
  • Tapered early repayment charges of 3/2% of the amount redeemed
  • Maximum loan of £500,000
  • Interest is calculated daily
  • Sale of Property is an acceptable repayment vehicle, subject to criteria

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 Developer contact.

Leeds Building Society has won three awards for innovation so far this year, having been named 'Innovator of the Year' at the Moneywise Magazine Mortgage Awards 2014 for its Welcome Mortgage. This allows borrowers to pay 0% interest for the first few months of their term so they can free up cash to help them settle into their new home.

The Society scooped the 'Mortgage Innovation Award' and was named 'Most Innovative Personal Finance Provider' at the Moneynet Personal Finance Awards 2015, and also received the 'Innovation Award (Lenders)' at the Mortgage Finance Gazette Awards, in addition to being named 'Best Intermediary Lender' and receiving the award for 'Best Use of Technology (Lenders)'.

Leeds Building Society has 67 branches throughout the UK, Gibraltar and Ireland and assets of £12.1bn (as at 30 June 2014). The Society has operated from the centre of Leeds since 1886.