Leeds BS changes interest-only policy
Leeds Building Society has changed their interest-only lending policy and borrowers will now need a 50% deposit if want to use the sale of their property as a method of repaying the mortgage.
The lender previously asked borrowers for a 30% deposit if they wanted to sell their home and repay the mortgage with the proceeds.
It is still possible to take interest-only if you have a 25% deposit, although you will have to use contributions to an ISA or a savings plan as a vehicle for repaying the mortgage.
Last week, Accord Mortgages told Mortgage Solutions magazine that they had seen a considerable uplift in interest-only applications after both Santander and Lloyd's announced changes to their lending criteria.
February 27, 2012
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