Paradigm Mortgage Services has launched two interest-only 5-year fixes at 2.25% to 60% loan-to-value and 2.45% at 75% LTV from Leeds Building Society.
Products can be taken as interest-only part and part where the mortgage is split between interest-only and full repayment. At 60% LTV this could mean 35% interest-only/25% repayment, while at up to 75% LTV the combination of interest-only and repayment is the client’s choice but the interest-only element cannot exceed 60% LTV.
The mortgages come with a free standard valuation, fees-assisted legals for standard remortgage and an arrangement fee of £1,499. The maximum loan available is £1.25m up to 65% LTV and £1m up to 75% LTV.
John Coffield, head of Paradigm Mortgage Services, said: “Just recently Leeds Building Society increased its maximum LTV on interest-only from 50% to 60% and we are therefore very pleased to be the first, and only, distributor to be offering these exclusive 5-year fixed rate products to market through Paradigm’s member firms.
“The development of interest-only, and in particular, the part and part option to clients shows that Leeds is at the forefront of innovation in the mortgage sector and it is seeking to develop new products which fit a niche but can be applicable to a wide range of customers.
“Undoubtedly, existing interest-only borrowers and those with endowment shortfalls will be interested in products which give them both payment security over the long-term but also allow them to pay off some of their mortgage capital.
“With these products, Leeds Building Society is looking after a relatively under-served part of the market and ensuring the ongoing rehabilitation of interest-only mortgages for suitable borrowers continues.
“We are sure our Paradigm member firms will see great value in these exclusives and we look forward to working with the society on these and other product opportunities.”
Jaedon Green, director of product and distribution at Leeds Building Society, said: “We continue to refine our award-winning interest-only proposition and are pleased to be able to offer these fixed rate deals through Paradigm.
“The criteria improvements we’ve made, such as changing minimum equity requirements to take account of regional variations in property prices, offer greater flexibility and a more tailored service.
“We’ve made these changes to help more borrowers who are not well-served by the wider market as we respond to borrowers’ and intermediaries’ feedback innovatively and responsibly.”