Leeds Building Society has today announced that it has extended its variety of interest only mortgages, adding two new fee-free deals for remortgages.
Recently, the Society added to its standing interest only mortgages available up to 50% LTV by introducing part and part interest only mortgages up to 75% LTV, with up to 50% LTV on interest only and the rest on a capital and repayment basis.
The pair of fee-free deals are 2.29% two year fixed rate interest only remortgage up to 50% LTV and a 2.49% two year fixed rate part and part interest only remortgage up to 75% LTV.
Both remortgage deals come with free valuations for homes worth up to £500,000 and fees assisted legal services in order to lower the cost of switching rates.
Leeds BS offer free remortgage deals
Martin Richardson, Leeds Building Society General Manager of Business Development, commented, ‘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,’ Richardson concluded.