Leeds launches new interest only cashback deals

Leeds Building Society has launched two new interest only mortgages with £1,000 cashback.

Related topics:  Mortgages
Rozi Jones
7th February 2017
Leeds Building Society
"With the incentives our latest products include, we’d expect the part and part deal to be of particular interest to interest only borrowers seeking to remortgage."

The two-year fixed rate mortgages are available at 2.09% interest only up to 60% LTV and 2.24% interest only part and part available up to 75% LTV.

Both come with free valuation, as well as fees assisted legal services for standard remortgages.

Jaedon Green, Leeds Building Society’s Director of Product and Distribution, said: “More choice is returning to the interest only market and these new products with incentives complement our existing range.

“Activity last year suggests borrowers with interest only and part and part mortgages are more likely to remortgage, compared to capital and interest borrowers, and we’d expect even more of these homeowners to take advantage of current low rates and switch to a better deal.

“With the incentives our latest products include, we’d expect the part and part deal to be of particular interest to interest only borrowers seeking to remortgage.

“Part and part mortgages offer more flexibility for borrowers to reduce their mortgage debt in a manageable way, such as when they have an endowment shortfall, without the payment shock of switching to a full repayment mortgage.

“We continue to refine and improve criteria on our interest only lending in response to broker and borrower feedback - last year we increased our interest only LTV maximum to 60%, whether alone or in part and part lending, where we’ll lend up to 75% LTV overall.”

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