Leeds Building Society has two new interest only mortgages with £1,000 cashback.
Both are two year fixed rate mortgages and each comes with a free valuation, as well as fees assisted legal services for standard remortgages.
The fixed rate mortgage deals include 2.09% interest only up to a loan-to-value of 60% or 2.24% interest only part and part available up to a loan-to-value of 75%.
With an interest only mortgage you only make payments towards the interest on the amount you’ve borrowed – meaning you will still owe the full amount borrowed at the end of your mortgage term.
By taking out a part and part mortgage you can repay part of the mortgage balance as repayment and the other part as interest only. This will reduce your mortgage balance at the end of your term, although you will still have an amount of the capital to pay back.
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.
“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.”
Loading ...