Please note: Leeds Building Society only accepts mortgage applications from intermediaries where they are providing an advised sales service, with the exception of Buy to Let & Holiday Let applications. It is the responsibility of the intermediary to ensure that all applicable law including, without limitation, the Financial Conduct Authority rules on advised mortgage sales are complied with including, without limitation, the provision of adequate explanations.

Interest Only mortgages

We offer a range of Interest Only mortgages for your clients, provided they have the ability to repay the capital at the end of their mortgage term.

Our Mortgages can be either Interest Only or Part and Part (e.g. combination of Interest Only and Capital and Interest).

  • No minimum income required (subject to affordability assessment).
  • Mortgages are available up to 60% LTV where the whole mortgage can be on Interest Only or
    up to 75% LTV, where up to 60% of the property value can be on Interest Only and the remaining must be on Capital and Interest (i.e. Part and Part).
  • We accept a wide range of repayment strategies to suit your client's needs, inlcuding the sale of a mortgaged property.
  • Free standard valuation up to £999.

Our repayment strategies

Your client should know from the start how they're going to repay the mortgage at the end of the mortgage term.

It is their responsibility to ensure that they have sufficient funds to repay the amount borrowed on an Interest Only basis and (where applicable) any accrued interest at the end of the term.

We allow:

Sale of a mortgaged property

Use our minimum equity finder to see how much they would require as minimum equity.

The equity can include the deposit and the amount that will be repaid under capital and interest terms (i.e. Part and Part).

Our mortgages rates

2 Year Interest Only Fixed Rate Mortgages

Initial rate fixed up to and inc. 31/01/20Then the Society's SVR thereafter, (currently)Overall cost for comparison (APRC)Max LTVProduct Fee
1.70% 5.69%5.3%60%£999 View
Max loan amount £1,250,000
2.00% 5.69%5.3%60%£0 View
Max loan amount £1,250,000

Part and Part 2 Year Interest Only Fixed Rate Mortgages

Initial rate fixed up to and inc. 31/01/20Then the Society's SVR thereafter, (currently)Overall cost for comparison (APRC)Max LTVProduct Fee
1.55% 5.69%5.1%75%£1999 View
Max loan amount £1,250,000 up to 65% LTV or £1,000,000 up to 75% LTV
1.70% 5.69%5.1%75%£999 View
Max loan amount £1,250,000 up to 65% LTV or £1,000,000 up to 75% LTV
RATES CORRECT AS AT 10 NOV 2017

Warning: Your home may be repossessed if you do not keep up repayments on your mortgage.

Representative Example

A mortgage of £200,000.00 payable over 25 years initially on a fixed rate for 2 years at 1.70% and then on our current Standard Variable Rate of 5.69% (variable) for the remaining 23 years would require 24 monthly payments of £283.33 and 276 monthly payments of £948.33.

The total amount payable would be £469,574.00 made up of the loan amount plus interest of £268,540.00 and application fee £0, product fee £999, valuation fee £0.

The overall cost for comparison is 5.3% APRC representative.

This representative example assumes a mortgage completion date on the 1st day of a calendar month.

The above representative example is for illustration purposes only and may vary depending on your personal circumstances.

Unless otherwise indicated, these products are only available for house purchases or for customers remortgaging from another lender. A product fee is payable on application but is refundable should the mortgage not complete. A mortgage exit fee of £199 will apply.

  • A product fee is payable on application but is refundable should the mortgage not complete.
  • A mortgage exit fee of £199 will apply.
  • 10% capital repayments are allowed each year without incurring an Early Repayment Charge.
  • For fixed rates until 30/09/19, Tapered Early Repayment Charges apply up to and including 30 September 2019.
  • For fixed rates until 31/01/20, Tapered Early Repayment Charges apply up to and including 01 January 2020.
  • Free Standard valuation up to £999.
  • Interest calculated daily.
  • Life cover or critical illness cover is not included with this mortgage but we strongly advise borrowers to protect their family home by making sure they have enough life cover and critical illness cover to pay off the mortgage (and where applicable any accrued interest) in the event of death or becoming unable to work due to accident or sickness.

Unless otherwise indicated, these products are only available for house purchases or for customers remortgaging from another lender, where the term doesn't extend beyond the stated retirement age and the customer is not using Shared Equity or Shared Ownership schemes.

5 Year Interest Only Fixed Rate Mortgages

Initial rate fixed up to and inc. 31/01/23Then the Society's SVR thereafter, (currently)Overall cost for comparison (APRC)Max LTVProduct Fee
2.14% 5.69%4.8%60%£999 View
Max loan amount £1,250,000
2.25% 5.69%4.8%60%£0 View
Max loan amount £1,250,000

Part and Part 5 Year Interest Only Fixed Rate

Initial rate fixed up to and inc. 31/01/23Then the Society's SVR thereafter, (currently)Overall cost for comparison (APRC)Max LTVProduct Fee
2.10% 5.69%4.3%75%£1999 View
Max loan amount £1,250,000 up to 65% LTV or £1,000,000 up to 75% LTV
2.19% 5.69%4.4%75%£999 View
Max loan amount £1,250,000 up to 65% LTV or £1,000,000 up to 75% LTV
RATES CORRECT AS AT 10 NOV 2017

Warning: Your home may be repossessed if you do not keep up repayments on your mortgage.

Representative Example

A mortgage of £200,000.00 payable over 25 years initially on a fixed rate for 5 years at 2.14% and then on our current Standard Variable Rate of 5.69% (variable) for the remaining 20 years would require 60 monthly payments of £356.67 and 240 monthly payments of £948.33.

The total amount payable would be £450,034.00 made up of the loan amount plus interest of £249,000.00 and application fee £0, product fee £999, valuation fee £0.

The overall cost for comparison is 4.8% APRC representative.

This representative example assumes a mortgage completion date on the 1st day of a calendar month.

The above representative example is for illustration purposes only and may vary depending on your personal circumstances.

Unless otherwise indicated, these products are only available for house purchases or for customers remortgaging from another lender. A product fee is payable on application but is refundable should the mortgage not complete. A mortgage exit fee of £199 will apply.

  • 10% capital repayments are allowed each year without incurring an Early Repayment Charge.
  • Tapered Early Repayment Charges apply up to and including 30 September 2022.
  • Tapered Early Repayment Charges apply up to and including 31 January 2023.
  • Free Standard valuation up to £999.
  • Interest calculated daily.
  • Available where part or all of the mortgage is on Interest Only. Sale of the mortgaged property can be used as a repayment strategy but equity must make downsizing plausible at the end of the mortgage term.

2 year Interest Only Discount Rate Mortgages

Initial rate variable for the first 2 years, (currently)TermsThen the Society's SVR less 1% discount for 3 years, (currently)Then the Society's SVR thereafter, (currently)Overall cost for comparison (APRC)Max LTVProduct Fee
1.80% The Society's SVR less 3.89%4.69%5.69%5.2%60%£999 View
Max loan amount £1,250,000
2.14% The Society's SVR less 3.55%4.69%5.69%5.2%60%£1499 View
Max loan amount £1,250,000 / £1,000 Cashback upon completion

Part and Part 2 year Interest Only Discounted Rate Mortgages

Initial rate variable for the first 2 years, (currently)TermsThen the Society's SVR less 1% discount for 3 years, (currently)Then the Society's SVR thereafter, (currently)Overall cost for comparison (APRC)Max LTVProduct Fee
1.85% The Society's SVR less 3.84%4.69%5.69%4.9%75%£999 View
Max loan amount £1,250,000 up to 65% LTV or £1,000,000 up to 75% LTV
2.20% The Society's SVR less 3.49%4.69%5.69%5.0%75%£1499 View
Max loan amount £1,250,000 up to 65% LTV or £1,000,000 up to 75% LTV / £1,000 Cashback upon completion
RATES CORRECT AS AT 10 NOV 2017

Warning: Your home may be repossessed if you do not keep up repayments on your mortgage.

Representative Example

A mortgage of £140,000.00 payable over 25 years initially on a 3.89% discount on our current Standard Variable Rate of 5.69% for 2 years and then a 1.00% discount on our current Standard Variable Rate of 5.69% for 3 years and then on our current Standard Variable Rate of 5.69% for the remaining 20 years would require 24 monthly payments of £210.00, 36 monthly payments of £547.17 and 240 monthly payments of £663.83.

The total amount payable would be £325,092.00 made up of the loan amount plus interest of £184,058.00 and application fee £0, product fee £999, valuation fee £0.

The overall cost for comparison is 5.2% APRC representative.

This representative example assumes a mortgage completion date on the 1st day of a calendar month.

The above representative example is for illustration purposes only and may vary depending on your personal circumstances.

Unless otherwise indicated, these products are only available for house purchases or for customers remortgaging from another lender. A product fee is payable on application but is refundable should the mortgage not complete. A mortgage exit fee of £199 will apply.

  • 10% capital repayments are allowed each year without incurring an Early Repayment Charge.
  • Tapered Early Repayment Charges applies for the first 2 years.
  • Free Standard valuation up to £999.
  • Only available to Interest Only applications.
  • Interest calculated daily.
  • Available where part or all of the mortgage is on Interest Only. Sale of the mortgaged property can be used as a repayment strategy but equity must make downsizing plausible at the end of the mortgage term.

Any questions?

Please contact your Business Development manager

For more general information we have developed a set of short and easy to use lending guides. View our criteria guide or Download our criteria guide (PDF 464 KB)