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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Leeds Building Society launches 10 year Retirement Interest Only mortgages

Leeds Building Society has launched new 10 year Retirement Interest Only mortgages and announced criteria changes to further increase the choices available to older borrowers.

The Society was the first national high street lender to enter this new market in July, following extensive research into borrowers’ needs and lending into later life.

As a result, the updated products, which include a free standard valuation and a £999 product fee, include:

  • 3.99% 10 year Retirement Interest Only fixed rate up to 55% LTV (loan to value)
  • 4.09% 10 year Retirement Interest Only fixed rate up to 55% LTV with a £500 cashback

Matt Bartle, Leeds Building Society’s Director of Products, said: “We drew on our experience within the interest only market to become the first national high street lender to launch Retirement Interest Only products in July. Since then, we have further enhanced our expertise in this area and know from our own research and market trends that consumers are increasingly looking for longer-term products.

“As a result we’ve introduced two new 10 year Retirement Interest Only mortgages, one with a cashback option, to ensure we continue to offer choice to consumers and help meet the needs of their own individual circumstances.

Leeds Building Society is also introducing criteria changes to its Retirement Interest Only offering, enabling income drawdown plans and self-invested personal pensions (SIPPs) to be considered when assessing income for applications.

Matt Bartle added: “We regularly keep our mortgage criteria under review to meet the needs of those often under served by the market.

“The consideration of appropriate drawdown plans and SIPPs during the affordability assessment is another example of providing increased flexibility for those looking at Retirement Interest Only mortgages as an option.

“Choosing a mortgage is always a highly personal decision and everyone’s individual circumstances and priorities are different, so it’s important consumers take appropriate advice via brokers.”

A Retirement Interest Only mortgage will be repaid when a specified life event occurs, usually moving into residential care, or the death of the borrower.

Leeds Building Society was named Best Building Society Savings Provider in the Moneyfacts Awards for 2018, having also won this title in 2017 and 2016.

Leeds Building Society operates throughout the UK and in Gibraltar and has assets of £19.5bn at 30 June 2018 (£17.3bn at 30 June 2017). The Society’s head office has been based in the centre of Leeds since 1886.

Key features

Retirement Interest Only 10 Year Fixed Rate up to and including 31st May 2029

  • 10% penalty free capital over-repayments permitted each year
  • Tapered early repayment charges, 10 Year – 6/6/5/5/5/5/4/4/3/2% until 31/05/2029
  • This product is available for both purchase and remortgage applications
  • Repayment method is sale of the property
  • Available for customers aged 55-80 at the point of application
  • Only available on Interest Only
  • No maximum term
Rate %LTV %Free Standard ValuationFees Assisted Legal for RemortgagesProduct FeeCashbackMax Loan
3.99 55 Y N £999 £0 £1,000,000

Cashback Retirement Interest Only 10 Year Fixed Rate up to and including 31st May 2029

  • 10% penalty free capital over-repayments permitted each year
  • Tapered early repayment charges, 10 Year – 6/6/5/5/5/5/4/4/3/2% until 31/05/2029
  • This product is available for both purchase and remortgage applications
  • Repayment method is sale of the property
  • Available for customers aged 55-80 at the point of application
  • Only available on Interest Only
  • No maximum term
  • £500 cashback paid upon completion
  • £50,000 minimum loan

Rate %LTV %Free Standard ValuationFees Assisted Legal for RemortgagesProduct FeeCashbackMax Loan
4.09 55 Y N £999 £500 £1,000,000