The Leeds Building Society has made changes to its interest-only lending criteria.
New part and part interest only mortgages launched today will be available up to 75% LTV, with a maximum of 50% on an interest only basis and the remainder on a capital and repayment basis.
The Society’s new part and part interest only mortgages are:
- Two year fixed rate interest only mortgage at 2.39%
- Five year fixed rate interest only mortgage at 2.99%
- Two year discounted rate interest only mortgage at 2.35%
All come with a free valuation, fees assisted legal services and a £999 fee.
“We’re offering borrowers who are currently on full interest only an opportunity to remortgage and benefit from the flexibility of starting to pay down their loan in a manageable way,” said Martin Richardson (pictured), Leeds Building Society’s general manager for business development.
“There will be many borrowers who took out interest only loans at the peak of their popularity in the mid-2000s, some of whom may have an endowment shortfall or have yet to reduce the original amount of their loan.
“Our part and part deals provide borrowers with the ability to start reducing the capital they owe, without the payment shock of moving to a full repayment mortgage.
“As a responsible lender, we assess affordability for all borrowers on the basis of a full capital repayment mortgage.
“This proposition will be attractive to a wide range of customers and is not restricted based on minimum income requirements. Part and part may also appeal to high net worth borrowers who are looking to use an interest only mortgage as part of a wider investment strategy.”