Two new interest-only, cashback mortgage deals at Leeds BS

14th February 2017

Leeds Building Society has introduced two new interest-only mortgages with £1,000 cashback. Both deals are two-year fixed-rates and each comes with a free valuation, as well as fees-assisted legal services for standard remortgage customers.

The deals are available at 2.09% interest-only up to 60% loan-to-value (LTV) and at 2.24% interest-only part-and-part up to 75% LTV.

“More choice is returning to the interest-only market and these new products with incentives complement our existing range,” said Jaedon Green, Leeds Building Society’s director of product and distribution.

“Activity last year suggests borrowers with interest-only and part-and-part mortgages are more likely to remortgage, compared to capital and interest borrowers, and we’d expect even more of these homeowners to take advantage of current low rates and switch to a better deal.

“Many interest-only borrowers may have felt deserted by lenders in recent years, but this sector remains a clear and successful focus for Leeds Building Society, as acknowledged by our awards for our part and part proposition.

“With the incentives our latest products include, we’d expect the part and part deal to be of particular interest to interest-only borrowers seeking to remortgage.

“Part-and-part mortgages offer more flexibility for borrowers to reduce their mortgage debt in a manageable way, such as when they have an endowment shortfall, without the payment shock of switching to a full repayment mortgage.”

*2 year fixed with TSB 1.09% then 3.59% - APRC is 3.3% Max LTV is 60%. Quoted on 27th May 2020.