Leeds raise maximum mortgage loan size to £1,250,000 if you take interest-only
Leeds Building Society is offering £1 million+ mortgages to borrowers when they opt for one of its specific interest-only rates. Unusually its range of capital repayment mortgages are limited to £500,000.
Leeds lowest interest-only rate is a 1.35% fix, which expires on the 31 August 2019. After the fixed period, the mortgage reverts to the lender's standard variable rate which is currently 5.44%. The overall cost for comparison is 5.03% APRC representative.
The 1.35% rate has a £999 arrangement fee, and early repayment charges apply until 31 August 2019. Applicants will need a 40% deposit to qualify, although there is a slightly more expensive rate if you have a 25% deposit and you are happy paying part of the mortgage on capital repayment.
Aaron Strutt, product director at Trinity Financial, says: “The lender has a calculator to work out how much equity applicants require in their property when they are selling and downsizing as a repayment vehicle.
“If you are using the sale of the property to repay the mortgage, according to the lender's minimum property equity calculator, you would need £380,000 equity if you were moving to the southwest. It reduces to £138,000 in you plan to live in the Manchester area.”
The lender provides a free property valuation, and it can even accept borrowers with one missed mortgage payment over the last 12 months. The maximum loan size for interest-only is £1,250,000.
Representative example: A mortgage of £500,000 payable over 25 years, initially on an interest-only fixed rate for 24 months at 1.35% and then on a variable rate of 5.44% for the remaining 23 years, would require 24 monthly repayments of £562.50 followed by 276 monthly repayments of £2,266.67. The total amount repayable would be £1,140,453.01 made up of the loan amount, plus interest (£639,100.01) and fees of £999. The overall cost for comparison is 5.03% APRC representative.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
Call Trinity Financial on 020 7016 0790 to secure an interest-only mortgage.
Get started today
Speak to one of our mortgage experts. Book an appointment to come and see us or request one of our experts to call you.
