Borrowers looking for interest-only mortgages will have more choice after Leeds Building Society added a fee free product to its range.
The Society has launched a two year interest only fixed rate product at a tempting rate of 1.65% with no fees, available up to 60% loan-to-value (LTV), so with a 40% deposit a pre-requisite, the product may not be for everyone.
It comes with a free standard valuation and fees assisted in-house legal services for standard remortgages.
Matt Bartle, Leeds Building Society’s Director of Products, commented, “This new product complements our existing range and offers more choice for customers looking for an interest only product.”
“Our purpose as a building society is to help people save to have the home they want and we are always looking for ways to help those borrowers less well served by the wider market.
“Those with incomes that vary from month to month, like the self-employed, can find these products suit their needs, because they offer the flexibility of being able to budget for lulls in their income, while also offering the opportunity to repay up to 10% capital a year, without penalty, if they are able.”
OutNewsGlobal’s mortgage expert, Michelle Costello, commented, “It is great to see more interest-only products coming back into the mortgage market as this is a great product for the right type of person.
“A word of caution, anyone looking at interest only lending needs to fully understand their responsibility to ensure the balance can be repaid at the end of term. I would always recommend anyone looking for any type off mortgage to seek help from a qualified advisor.”
Before agreeing to any mortgage, Leeds Building Society assesses affordability for all borrowers on the basis of a full capital repayment mortgage.