Mortgage News
Leeds BS caps max interest-only LTV at 50%
Leeds Building Society has cut its maximum loan-to-value for interest-only lending from 75% to 50%, which is effective immediately.
Last month, the building society slashed its maximum LTV on interest-only loans, from 70% to 50% for deals where the repayment strategy is the sale of the property and on shared equity mortgages.
The lender said the latest changes will impact all borrowers, regardless of the repayment vehicle they have in place.
Gary Brook, head of corporate communication, said: “We constantly review our products and criteria to make sure that they remain appropriate for the market.
“We have seen a number of large lenders change criteria on interest-only lending recently and we need to manage our business volumes appropriately.”
The changes will not impact the society’s buy-to-let lending policy.
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In this week’s Market Watch, The Building Societies Association, Teachers Building Society and brokerage Just Us Financial Solutions look at how long it will be before interest-only truly becomes a niche product.