Leeds launches new mortgages for the under-served Interest Only market

Leeds Building Society has unveiled new Interest Only two and five year fee assisted fixed rate deals available up to 50% loan to value (LTV) at rates of 2.49% and 3.19% respectively.

These products offer free standard valuations up to £335 and fees assisted legal services for standard remortgages. All the offers have fees of only £199. Customers can make 10% capital repayments each year without penalty.

The Society is also launching a fee assisted two year discount rate deal up to 50% LTV, at a current rate of 2.30%. This again comes with a free standard valuation up to £335 and fees assisted legal services for standard remortgages.     

“Our new range of products is designed to support homebuyers and remortgagors looking to borrow on an Interest Only basis and supports under-served customers in this market, who use ‘Sale of Property’ as their intended repayment vehicle.

“We already offer Interest Only up to 50% LTV, accepting various repayment vehicles. However, not all Interest Only mortgage providers accept Sale of Property as a repayment vehicle,” said Martin Richardson, Leeds Building Society’s General Manager – Business Development.

“We've reviewed our range of competitive two and five year deals to offer borrowers an additional range of benefits including low fees, free valuations and fees assisted legal services. 

“These offers provide a fantastic opportunity for those customers who wish to lock into the certainty of low fixed repayments. This is combined with the flexibility of 10% capital repayments each year at a very affordable rate.”