Leeds launches interest-only mortgages

Leeds Building Society has unveiled a new range of interest-only two- and five-year fixed-rate mortgages.

The products are available up to 50 per cent loan-to-value (LTV) at rates of 2.49 per cent and 3.19 per cent 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 per cent capital repayments each year without penalty.

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

Martin Richardson, Leeds’ general manager of business development, comments:

“Our new range of products is designed to support homebuyers and remortgagers 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 per cent LTV, accepting various repayment vehicles. However, not all interest-only mortgage providers accept Sale of Property as a repayment vehicle.

“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 per cent capital repayments each year at a very affordable rate.”