Interest Only mortgages

With an Interest Only mortgage, you’ll only make payments towards the interest on the amount you've borrowed. Your mortgage payments won’t pay off any of the capital, which is the amount of money you initially borrowed. You’ll still owe the full balance once your mortgage has come to an end.

A Part & Part mortgage is split between two repayment methods – interest only, and repayment (capital and interest). So you’ll pay off some of the capital through your monthly payments, but not all of it. You’ll still owe some capital once your mortgage has come to an end.

What does Leeds Building Society offer?

We offer a range of products for customers looking to borrow up to 75% of the value of the property (loan to value or LTV).

  • If you’re looking to borrow up to 60% LTV, your whole mortgage can be interest only. Or you can take a Part & Part approach with any combination of your choice.
  • If you want to borrow between 60% and 75% LTV, up to 60% of the value of the property can be borrowed on interest only. The remaining amount (up to 15%) must be on repayment.

You’ll need to have a clearly understood and credible repayment strategy in place to repay your Interest Only or Part & Part mortgage. All repayment strategies will be subject to approval by our mortgage underwriters.

You can apply online** or over the phone. Use our mortgage calculator to work out your monthly repayments.

Repayment strategies

Examples of repayment strategies could be:

  • using a savings or investment product, such as an endowment, pension or ISA
  • selling the property you’ve mortgaged
  • selling another property
  • a combination of these.

Whichever option you choose, you’ll need to review your plans regularly to make sure you’re on track to pay off everything you owe at the end of the mortgage term. So if the mortgaged property is your main residence and you plan to sell it, you’ll need to make sure the sale is still likely to provide you with enough money to pay this off and buy a new property. At some point during the term of the mortgage we'll contact you to check that your repayment strategy is still in place and credible.

We can’t advise you on the suitability of any particular repayment strategy. If you have any questions regarding the suitability of a repayment strategy, you should speak to an independent financial advisor.

The mortgaged property (which may be your home) may be repossessed if you do not keep up repayments on your mortgage

2 Year Interest Only Fixed Rate Mortgages

Initial rate fixed up to and inc. 31/10/23Then changing to the Society's SVR less a discount of 1.25%, up to and inc. 31/10/2026, (currently)Then the Society's SVR thereafter, (currently)Overall cost for comparison (APRC)Max LTVProduct Fee
1.84% 4.04%5.29%3.8%60%£1,999 View
Max loan amount £1,250,000
1.89% 4.04%5.29%3.8%60%£999 View
Max loan amount £1,250,000

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

Initial rate fixed up to and inc. 31/10/23Then changing to the Society's SVR less a discount of 1.25%, up to and inc. 31/10/2026, (currently)Then the Society's SVR thereafter, (currently)Overall cost for comparison (APRC)Max LTVProduct Fee
1.99% 4.04%5.29%3.8%75%£999 View
Max loan amount £1,250,000
RATES CORRECT AS AT 07 july 2021

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

Representative Example

A mortgage of £180,000.00 payable over 25 years initially on a fixed rate for 2 years at 1.99% and then a 1.25% discount on our current Standard Variable Rate of 5.29% giving a rate of 4.04% for 23 years and then on our current Standard Variable Rate of 5.29% for the remaining 0 years would require 24 monthly payments of £761.59, 276 monthly payments of £938.39 and 0 monthly payments of £0.00.

The total amount payable would be £278,307.53 made up of the loan amount plus interest of £97,273.53 and application fee £0, product fee £999, valuation fee £0, funds transfer fee £35.

The overall cost for comparisons is 3.8% 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.

This representative example has been calculated on an interest only basis.

Key details about this product range

  • 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.
  • Tapered Early Repayment Charges may apply.
  • Interest calculated daily.
  • When you're applying for an interest only mortgage, please be aware that you'll need to have a credible repayment strategy in place to pay off the loan and any interest accrued under the mortgage at the end of the term.
  • The products and services on this site are available to UK residents only.
  • Mortgage applicants must be 18 years or over.
  • Mortgages are subject to eligibility, status and financial standing.

For more detail about specific products, visit the links in the table above.

5 Year Interest Only Fixed Rate Mortgages

Initial rate fixed up to and inc. 31/10/26Then the Society's SVR thereafter, (currently)Overall cost for comparison (APRC)Max LTVProduct Fee
2.04% 5.29%4.1%60%£1,999 View
Max loan amount £1,250,000
2.10% 5.29%4.1%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. 31/10/26Then the Society's SVR thereafter, (currently)Overall cost for comparison (APRC)Max LTVProduct Fee
2.19% 5.29%4.2%75%£999 View
Max loan amount £1,250,000
RATES CORRECT AS AT 07 july 2021

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

Representative Example

A mortgage of £180,000.00 payable over 25 years initially on a fixed rate for 5 years at 2.19% and then on our current Standard Variable Rate of 5.29% (variable) for the remaining 20 years would require 60 monthly payments of £779.18 and 240 monthly payments of £1022.52.

The total amount payable would be £293,190.37 made up of the loan amount plus interest of £112,156.37 and application fee £0, product fee £999, valuation fee £0, funds transfer fee £35.

The overall cost for comparison is 4.2% 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.

This representative example has been calculated on an interest only basis.

Key details about this product range

  • 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.
  • Tapered Early Repayment Charges may apply.
  • Interest calculated daily.
  • When you're applying for an interest only mortgage, please be aware that you'll need to have a credible repayment strategy in place to pay off the loan and any interest accrued under the mortgage at the end of the term.
  • The products and services on this site are available to UK residents only.
  • Mortgage applicants must be 18 years or over.
  • Mortgages are subject to eligibility, status and financial standing.

For more detail about specific products, visit the links in the table above.

** If you apply for a mortgage online you will not receive advice from Leeds Building Society. You will need to make your own choice about which mortgage is suitable for you and we will not assess the suitability of that mortgage to your needs and circumstances. You will not benefit from the protections offered by an advised service. This is called an execution only transaction. If you would like to receive advice from us please contact us.
  • Extra help and guidance

    If you want help and support with your application call a Mortgage Assistant

    03450 50 50 62(press option 2)

  • Talk to an expert now

    When you're ready to apply for a mortgage, call to request to speak to a Mortgage Consultant

    03458 48 00 26 (press option 1)