You are here:
Please note:
Leeds Building Society only accepts mortgage applications from intermediaries where they are providing an advised sales service, with the exception of Buy to Let & Holiday Let applications. It is the responsibility of the intermediary to ensure that all applicable law including, without limitation, the Financial Conduct Authority rules on advised mortgage sales are complied with including, without limitation, the provision of adequate explanations.
Interest Only mortgages
We offer a range of Interest Only mortgages for your clients, provided they have the ability to repay the capital at the end of their mortgage term.
Our Mortgages can be either Interest Only or Part and Part (e.g. combination of Interest Only and Capital and Interest).
- No minimum income required (subject to affordability assessment).
- We accept a wide range of repayment strategies to suit your client's needs, including the sale of a mortgaged property.
- Free standard valuation up to £999.
- For full details of our Interest Only criteria, including LTV rates, view our criteria guide.
Our repayment strategies
Your client should know from the start how they're going to repay the mortgage at the end of the mortgage term.
It is their responsibility to ensure that they have sufficient funds to repay the amount borrowed on an Interest Only basis and (where applicable) any accrued interest at the end of the term.
We allow:
Sale of a mortgaged property
Use our minimum equity finder to see how much they would require as minimum equity.
The equity can include the deposit and the amount that will be repaid under capital and interest terms (i.e. Part and Part).
Sale of other property
- We allow the use of equity held in other properties.
- We need all property details, evidence of ownership and the amount of mortgage debt, if any.
- The equity can include the deposit and the amount that will be repaid under capital and interest terms (i.e. Part & Part mortgages).
- We will also carry out a plausibility check against the estimated level of equity.
Savings, pensions and investments
Pensions
- We use a maximum of 25% of the borrower's latest projected pension value.
- The pension projections can be based on either the middle or lower growth rates.
- We need a copy of the latest pension projection statement dated within the last 12 months.
Regulated Investments (e.g. Endowment Policies)
- We use 100% of the borrower's latest projected value of any regulated investments.
- The investment projections should be based on middle growth rates.
- We need a copy of the latest statement (showing projections) dated with in the last 12 months.
Lump sum savings and investments (e.g. Bonds, Unit trusts)
- We use 100% of the current value of the borrower's savings and investments.
- We need a copy of the latest statement dated within the last 12 months.
Stocks and Shares
- We use 100% of the latest valuation of their stocks and shares.
- Shares should be in FTSE 100 / 250 companies, with at least 3 companies within the portfolio.
- We need a copy of the share certificates, evidence of shareholdings and their valuation.
Things to consider:
- Savings, pensions and investments need to have been in place for 12 months.
- The borrower can also use a combination of the savings, pensions and investments repayment strategies (e.g. Pensions, Regulated investments and Stocks and shares).
- They can use a maximum of three savings, pensions and investment repayment strategies, which must be in pounds sterling.
- If the borrower combines the existing savings, supplemented by future regular saving, the Society will consider if the combination is a suitable repayment strategy.
- They can use a maximum of three options from a combination of savings, pensions and investment repayment strategies, which must be in pounds sterling.
- The borrower must review their plans regularly to make sure they are on track to pay off the mortgage and any accrued interest, if applicable, by the end of their mortgage term and make changes if necessary.
- Whilst the Society may accept a repayment strategy, the acceptance does not guarantee that the proceeds will be enough to fully repay the debt by the end of the mortgage term.
- The Society will seek to confirm that the repayment strategy is clear, reliable and appropriate.
- We will contact the borrower to check that their repayment strategy is still in place and that it is reasonable to expect that the strategy will repay the amount borrowed and any interest accrued, if applicable, by the end of the mortgage term.
- It is the borrower's responsibility to ensure that they have sufficient funds to repay the amount borrowed on an Interest Only basis and any accrued interest where applicable by the end of the term.
We do not lend on Interest Only for Shared Equity, Shared Ownership and where the term extends beyond stated retirement.
Our mortgages rates
Legal Assisted 2 Year Interest Only Fixed Rate Mortgages
| Initial rate fixed up to and inc. 28/02/2027 | Then changing to the Society's SVR less a discount of 0.75%, up to 28/02/2030, (currently) | Then the Society's SVR thereafter, (currently) | Overall cost for comparison (APRC) | Max LTV | Product Fee | |
| 4.94% | 7.49% | 8.24% | 7.9% | 60% | £999 |
View
|
| Max loan amount £2,000,000 |
| 5.19% | 7.49% | 8.24% | 7.9% | 60% | £0 |
View
|
| Max loan amount £2,000,000 |
Legal Assisted Part and Part 2 Year Interest Only Fixed Rate Mortgages
| Initial rate fixed up to and inc. 28/02/2027 | Then changing to the Society's SVR less a discount of 0.75%, up to and inc. 28/02/2030, (currently) | Then the Society's SVR thereafter, (currently) | Overall cost for comparison (APRC) | Max LTV | Product Fee | |
| 4.94% | 7.49% | 8.24% | 7.9% | 60% | £999 |
View
|
| Max loan amount £2,000,000 |
| 5.19% | 7.49% | 8.24% | 7.9% | 60% | £0 |
View
|
| Max loan amount £2,000,000 |
| 5.29% | 7.49% | 8.24% | 7.9% | 75% | £0 |
View
|
| Max loan amount £2,000,000 |
RATES CORRECT AS AT 20 november 2024
Representative Example
A mortgage of £120,000.00 payable over 25 years initially on a fixed rate for 2 years at 5.29% and then a 0.75% discount on our current Standard Variable Rate of 8.24% giving a rate of 7.49% for 3 years and then on our current Standard Variable Rate of 8.24% for the remaining 20 years would require 24 monthly payments of £529.00, 36 monthly payments of £749 and 240 monthly payments of £824.00.
The total amount payable would be £357,455.00 made up of the loan amount plus interest of £237,420.00 and application fee £0, product fee £0, valuation fee £0, funds transfer fee £35.
The overall cost for comparisons is 7.9% APRC representative.
This representative example assumes a mortgage completion date on the 1st day of a calendar month.
The above representative example is for illustration purposes only and may vary depending on your personal circumstances.
This representative example has been calculated on an interest only basis. The monthly payments, total amount payable and interest charged all reflect this calculation method.
Key details about this product range
- Unless otherwise indicated, these products are only available for house purchases or for customers remortgaging from another lender.
- A product fee is payable on application (where applicable) but is refundable should the mortgage not complete.
- A mortgage exit fee of £199 will apply.
- Tapered Early Repayment Charges may apply.
- Interest calculated daily.
- When you're applying for an interest only mortgage, please be aware that you'll need to have a credible repayment strategy in place to pay off the loan and any interest accrued under the mortgage at the end of the term.
- The products and services on this site are available to UK residents only.
- Mortgage applicants must be 18 years or over.
- Mortgages are subject to eligibility, status and financial standing.
For more detail about specific products, visit the links in the table above.
Legal Assisted 5 Year Interest Only Fixed Rate Mortgages
| Initial rate fixed up to and inc. 28/02/2030 | Then the Society's SVR thereafter, (currently) | Overall cost for comparison (APRC) | Max LTV | Product Fee | |
| 4.59% | 8.24% | 7.2% | 60% | £999 |
View
|
| Max loan amount £2,000,000 |
| 4.69% | 8.24% | 7.2% | 60% | £0 |
View
|
| Max loan amount £2,000,000 |
Legal Assisted Part and Part 5 Year Interest Only Fixed Rate Mortgages
| Initial rate fixed up to and inc. 28/02/2030 | Then the Society's SVR thereafter, (currently) | Overall cost for comparison (APRC) | Max LTV | Product Fee | |
| 4.59% | 8.24% | 7.2% | 60% | £999 |
View
|
| Max loan amount £2,000,000 |
| 4.79% | 8.24% | 7.2% | 60% | £0 |
View
|
| Max loan amount £2,000,000 |
| 4.89% | 8.24% | 7.3% | 75% | £0 |
View
|
| Max loan amount £2,000,000 |
RATES CORRECT AS AT 20 november 2024
Representative Example
A mortgage of £120,000.00 payable over 25 years initially on a fixed rate for 5 years at 4.89% and then on our current Standard Variable Rate of 8.24% (variable) for the remaining 20 years would require 60 monthly payments of £489.00 and 240 monthly payments of £824.00.
The total amount payable would be £347,135.00 made up of the loan amount plus interest of £227,100.00 and application fee £0, product fee £0, valuation fee £0, funds transfer fee £35.
The overall cost for comparison is 7.3% APRC representative.
This representative example assumes a mortgage completion date on the 1st day of a calendar month.
The above representative example is for illustration purposes only and may vary depending on your personal circumstances.
This representative example has been calculated on an interest only basis. The monthly payments, total amount payable and interest charged all reflect this calculation method.
Key details about this product range
- Unless otherwise indicated, these products are only available for house purchases or for customers remortgaging from another lender.
- A product fee is payable on application (where applicable) but is refundable should the mortgage not complete.
- A mortgage exit fee of £199 will apply.
- Tapered Early Repayment Charges may apply.
- Interest calculated daily.
- When you're applying for an interest only mortgage, please be aware that you'll need to have a credible repayment strategy in place to pay off the loan and any interest accrued under the mortgage at the end of the term.
- The products and services on this site are available to UK residents only.
- Mortgage applicants must be 18 years or over.
- Mortgages are subject to eligibility, status and financial standing.
For more detail about specific products, visit the links in the table above.
We have developed a set of short, easy-to-use guides to our criteria.
View our criteria guides »
Any questions?
Please contact your nearest Development Manager. Find your nearest Development Manager »
