Leeds increases interest only LTV to 60%

Leeds Building Society has increased its maximum LTV from 50% to 60% on all interest only mortgages, including its part and part range which allows borrowers to combine interest only and capital and repayment.

Related topics:  Mortgages
Rozi Jones
12th September 2016
leeds building society
"Part and part can offer borrowers more flexibility in reducing their mortgage debt in a manageable way, when they have an endowment shortfall, for example."

Part and part deals are available up to 75% LTV and the Society will now lend up to 60% LTV on interest only and the remainder on a capital and repayment basis.

Leeds Building Society also has refined its minimum equity requirements for borrowers intending to use sale of the property as a repayment strategy, taking regional variations in property values into account to give greater flexibility and a more tailored service.

Leeds accepts sale of property as a repayment strategy and does not impose minimum income requirements.

Richard Fearon, Leeds Building Society’s Chief Commercial Officer, said: “The changes we’ve made are intended to help more borrowers who are not well-served by the wider market as we respond to borrowers’ and intermediaries’ feedback innovatively and responsibly.

“Refining and improving our interest only lending criteria is a way we can do this, to achieve our purpose to help more people to have the home they want.

“Our interest only deals come with a range of fee and incentive options – we know the fees assisted part and part products have been particularly popular with homeowners looking to remortgage from existing interest only loans.

“Part and part can offer borrowers more flexibility in reducing their mortgage debt in a manageable way, when they have an endowment shortfall, for example. It also can suit borrowers whose salary is expected to rise, such as through professional qualification.”

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