Leeds Building Society changed their interest only criteria to assess the required minimum equity for customers who are using the sale of property as an interest only repayment vehicle on a regional basis. This means more of your customers may be able to apply for an interest only or part interest only part repayment mortgage.
Leeds Building Society listened to your feedback around wanting the equity requirements to be available online and so have designed a simple tool which can be found here.*
To use it, simply enter the first part of the postcode area your customers plan to move to – you’ll then be able to see the minimum equity required by Leeds Building Society in your customer’s existing property.
Customers with an interest only part and part mortgage can use the capital and interest element of the loan towards the equity required to downsize. Leeds Building Society will assess the equity based on their term end position i.e. after the capital & interest element has been repaid.
Other repayment methods accepted by Leeds Building Society include:
- 25% from their projected pension lump sum(s)
- Sale of any existing properties
- Endowment policy
- Savings/investments that have been established for at least 12 months
For more information, contact your Business Development Manager here.
*This tool will only assess the minimum equity required and does not guarantee acceptance. Your client will also be subject to our full underwriting process.
This information is for use by FCA authorised intermediaries only and must not be distributed to potential borrowers
