NEW INTEREST ONLY CRITERIA FROM LEEDS BUILDING SOCIETY

May 19, 2015 by in category Mortgage News with 0 and 0

In order to give borrowers more flexibility when repaying their mortgage, Leeds Building Society has changed its interest-only lending criteria.
Similar to that offered by Santander they have introduced part and part interest-only mortgages available up to 75% LTV, with a maximum of 50% on an interest-only basis and the remainder on a capital and repayment basis.
The society is offering borrowers who are currently on full interest-only an opportunity to remortgage and benefit from the flexibility of starting to pay down their loan in a manageable way, Martin Richardson, Leeds Building Society’s general manager for business development, said.
He continued by saying “There will be many borrowers who took out interest-only loans at the peak of their popularity in the mid-2000s, some of whom may have an endowment shortfall or have yet to reduce the original amount of their loan.”
He went on by saying “Our part and part deals provide borrowers with the ability to start reducing the capital they owe, without the payment shock of moving to a full repayment mortgage. As a responsible lender, we assess affordability for all borrowers on the basis of a full capital repayment mortgage.”

It is hoped that more lenders will loosen their criteria on interest only mortgages as there are many instances where this is of benefit to the customer

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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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