New fee-free interest only remortgage deals from Leeds Building Society
Leeds Building Society has extended its range of interest only mortgages with two new fee-free deals for remortgages.
In May the Society added to its existing interest only mortgages available up to 50% LTV (loan to value), by introducing part and part interest only 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 interest only mortgages offer borrowers more flexibility in reducing their mortgage debt in a manageable way and since the launch two months ago about four in five applications have been for remortgage.
The two new fee-free deals are:
- 2.29% two year fixed rate interest only remortgage up to 50% LTV
- 2.49% two year fixed rate part and part interest only remortgage up to 75% LTV
Both remortgage deals come with free valuations for properties worth up to £500,000 and fees assisted legal services to further keep down the cost of switching.
“Since we introduced part and part interest only mortgages two months ago, the vast majority of applications have been for remortgages,” said Martin Richardson, Leeds Building Society General Manager – Business Development.
“This is broadly in line with what we expected - we anticipated part and part would appeal in particular to existing interest only borrowers who had yet to make any progress paying down their original loan.
“This alternative offers them the opportunity to start reducing their outstanding capital without the payment shock they’d experience if they changed to a full repayment mortgage. This category of borrowers can include existing interest only homeowners who may be facing an endowment shortfall.”
Notes to Editors
Leeds Building Society has no minimum salary requirement for interest only and part and part borrowers and, as a responsible lender, assesses affordability for all mortgages on a full capital repayment basis.
Awards won by Leeds Building Society in the past 12 months include the ‘Innovation Award (Lenders)’ at the Mortgage Finance Gazette Awards 2015, in addition to being named ‘Best Intermediary Lender’, both for the second consecutive year. The Society also received 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 31st December 2014). The Society has operated from the centre of Leeds since 1886.