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 Interest Only mortgages for your clients, provided they have the ability to repay the capital at the end of their mortgage term.

Our Mortgages can be either Interest Only or Part and Part (e.g. combination of Interest Only and Capital and Interest).

No minimum income required (subject to affordability assessment).
We accept a wide range of repayment strategies to suit your client's needs, including the sale of a mortgaged property.
Free standard valuation up to £999.
For full details of our Interest Only criteria, including LTV rates, view our criteria guide.

Our repayment strategies

Your client should know from the start how they're going to repay the mortgage at the end of the mortgage term.

It is their 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.

We allow:

Sale of a mortgaged property

Use our minimum equity finder to see how much they would require as minimum equity.

The equity can include the deposit and the amount that will be repaid under capital and interest terms (i.e. Part and Part).

View our other Interest Only repayment strategies

Sale of other property

We allow the usage of equity held in other properties.
We need all property details, evidence of ownership and the amount of mortgage debt, if any.
The equity can include the deposit and the amount that will be repaid under capital and interest terms (i.e. Part & Part mortgages).
We will also undertake a plausibility check against the estimated level of equity.

Savings, pensions and investments

Pensions

We use a maximum of 25% of their latest projected pension value.
The pension projections can be based on either the middle or lower growth rates.
We need a copy of the latest pension projection statement dated within the last 12 months.

Regulated Investments (e.g. Endowment Policies)

We use 100% of their latest projected value of any regulated investments.
The investment projections should be based on middle growth rates.
We need a copy of the latest statement (showing projections) dated with in the last 12 months.

Lump sum savings and investments (e.g. Bonds, Unit trusts)

We use 100% of their savings and investments current value.
We need a copy of the latest statement dated within the last 12 months.

Stocks and Shares

We use 100% of the latest valuation of their stocks and shares.
The shares should be in FTSE 100 / 250 companies, with a minimum of 3 companies within the portfolio.
We need the copy of the share certificates, evidence of share holdings and their valuation.

Things to consider:

Savings, pensions and investments must have been in place for 12 months.
The borrower can also use a combination of the savings, pensions and investments repayment strategies (e.g. Pensions, Regulated invetsments and Stocks and shares).
Maximum of three savings, pensions and investment repayment strategies combination can be used and they must be in pounds sterling.
If the borrower's use combination of the existing savings, supplemented by future regular saving, the society will consider whether the combination represents a plausible repayment strategy.
If using any of the savings and investments repayment strategies the borrower's should regularly assess the value of their investment(s) and also seek independent financial advice where appropriate.
The borrower's must review their plans regularly to make sure they are on track to pay off the mortagage (and any accrued interest, if applicable) by the end of their mortgage term, if necessary make changes.
Whilst the Society may choose to accept a repayment strategy, the acceptance does not guarantee that the proceeds will be sufficient to repay the debt in full at the end of the mortgage term.
The Society will seek to satisfy itself that the repayment strategy is clear, credible and appropriate.
We will contact the borrower at some point to check if their repayment strategy is still in place and it is reasonable to expect that it will repay the amount borrowed (and any interest accrued, if applicable) by the end of the mortgage term.
It is the borrower's 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.

We do not lend on Interest Only for Shared Equity, Shared Ownership and where the term extends beyond stated retirement.

Legal Assisted Part and Part 2 Year Interest Only Fixed Rate Mortgages

Initial rate fixed up to and inc. 31/12/22	Then the Society's SVR less 1.25% discount up to and inc. 31/12/25, (currently)	Then the Society's SVR thereafter, (currently)	Overall cost for comparison (APRC)	Max LTV	Product Fee
1.76%	4.04%	5.29%	4.5%	75%	£1,999	View
Max loan amount £1,250,000
1.90%	4.04%	5.29%	3.8%	75%	£999	View
Max loan amount £1,250,000
2.44%	4.04%	5.29%	3.8%	75%	£0	View
Max loan amount £1,250,000

RATES CORRECT AS AT 08 september 2020

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

Representative Example

A mortgage of £230,000.00 payable over 25 years initially on a fixed rate for 2 years at 1.76% and then a 1.25% discount on our current Standard Variable Rate of 5.29% for 3 years and then on our current Standard Variable Rate of 5.29% for the remaining 20 years would require 24 monthly payments of £947.68, 36 monthly payments of £1196.71 and 240 monthly payments of £1330.32.

The total amount payable would be £387,137.68 made up of the loan amount plus interest of £155,103.68 and application fee £0, product fee £1999, valuation fee £0, funds transfer fee £35.

The overall cost for comparisons is 4.5% 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 fee is payable on application (where applicable) but is refundable should the mortgage not complete. A mortgage exit fee of £199 will apply.

10% capital repayments are allowed each year without incurring an Early Repayment Charge.
Tapered Early Repayment Charges apply up to and including 31 December 2022.
Free Standard valuation up to £999.
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.
Maximum Interest Only element 60%.
Fees assisted legal services for standard re-mortgages.

Legal Assisted 5 Year Interest Only Fixed Rate Mortgages

Initial rate fixed up to and inc. 31/12/25	Then the Society's SVR thereafter, (currently)	Overall cost for comparison (APRC)	Max LTV	Product Fee
2.24%	5.29%	4.2%	60%	£999	View
Max loan amount £1,250,000

Legal Assisted Part and Part 5 Year Interest Only Fixed Rate Mortgages

Initial rate fixed up to and inc. 31/12/25	Then the Society's SVR thereafter, (currently)	Overall cost for comparison (APRC)	Max LTV	Product Fee
2.24%	5.29%	4.2%	75%	£1,999	View
Max loan amount £1,250,000
2.34%	5.29%	4.2%	75%	£999	View
Max loan amount £1,250,000
2.54%	5.29%	4.2%	75%	£0	View
Max loan amount £1,250,000

RATES CORRECT AS AT 08 september 2020

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

Representative Example

A mortgage of £130,000.00 payable over 25 years initially on a fixed rate for 5 years at 2.54% and then on our current Standard Variable Rate of 5.29% (variable) for the remaining 20 years would require 60 monthly payments of £585.40 and 240 monthly payments of £743.83.

The total amount payable would be £213,678.94 made up of the loan amount plus interest of £83,643.94 and application fee £0, product fee £0, valuation fee £0, funds transfer fee £35.

The overall cost for comparison is 4.2% APRC representative.