Leeds Building society has loosened its part and part interest-only mortgage criteria and accepts sales as a repayment strategy on Loan to Values (LTV) of up to 75%.
The products are available up to 75% LTV, with a maximum of 50% on an interest only basis and the remainder on a capital and repayment basis.
Leeds Building Society does not impose minimum income requirements and calculates the minimum equity of £150,000 based on the borrower’s term end position.
“We always try to be responsive to borrowers’ and brokers’ feedback and have kept our criteria under review since we launched part and part interest only mortgages business development,” said Martin Richardson, Leeds BS’ director of business development.
This is the latest in a series of changes to the product since launch.
Leeds said part and part reduces the payment shock of moving to a full repayment mortgage for homeowners who’ve yet to reduce the capital they owe, because of an endowment shortfall, for example.
“It’s also relevant to high net worth borrowers, who are looking to use an interest only mortgage as part of a wider investment strategy, or for home buyers who can expect their future income to rise significantly, such as when they complete professional qualifications,” Richardson added.
Victoria Hartley is contributing editor at Mortgage Solutions, Specialist Lending Solutions, Your Money and Your Mortgage at London-based publishing company AE3 Media.
She has an MA in Radio from Goldsmiths after gaining a 2:1 in a Comparative American Studies BA at Warwick University. She also holds a TEFL qualification and taught overseas in Mexico and Japan from 1994 to 1997.
Her role includes editorial oversight of the news, analysis and features, event content management and strategic and editorial consultancy for the AE3 Media group. She is an experienced video, broadcast and live-event host and regularly chairs web and podcast debates and interviews.
Multiple award nominations have resulted in two wins: Santander Media Awards, trade journalist of the year and Headlinemoney Awards, mortgage journalist of the year (B2B). Here is one of the award-winning pieces: https://www.mortgagesolutions.co.uk/news/2011/07/21/exclusive-tale-bailey-fraud-witness/
Previous roles include editorships of Mortgage Solutions, consumer title What Mortgage and trade title Credit Today as well as a stint freelancing for a variety of outlets including The Guardian and Which? Money.
