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.