Leeds launch fee-free interest only remortgage deals
In May the Society added to its existing interest only mortgages available up to 50% LTV (loan to value), by introducing part and part interest only mortgages up to 75% LTV, with up to 50% LTV on interest only and the remainder on a capital and repayment basis.
Part and part interest only mortgages offer borrowers more flexibility in reducing their mortgage debt in a manageable way and since the launch two months ago about four in five applications have been for remortgage.
The two new fee-free deals are a 2.29% 2-year fixed rate interest only remortgage up to 50% LTV and a 2.49% 2-year fixed rate part and part interest only remortgage up to 75% LTV
Both remortgage deals come with free valuations for properties worth up to £500,000 and fees assisted legal services to further keep down the cost of switching.
Martin Richardson, Leeds general manager, business development, said: “Since we introduced part and part interest only mortgages two months ago, the vast majority of applications have been for remortgages,
“This is broadly in line with what we expected – we anticipated part and part would appeal in particular to existing interest only borrowers who had yet to make any progress paying down their original loan.
“This alternative offers them the opportunity to start reducing their outstanding capital without the payment shock they’d experience if they changed to a full repayment mortgage. This category of borrowers can include existing interest only homeowners who may be facing an endowment shortfall.”