Part and part mortgages, which were introduced in May 2015, enable up to 50% LTV to be paid on an interest-only basis and the remainder on a capital and repayment basis.
Leeds Building Society has launched a 1.60% 2-year mortgage to 50% loan-to-value and a 1.70% ‘part and part’ mortgage to 75% LTV, both with a £1999 fee.
Part and part mortgages, which were introduced in May 2015, enable up to 50% LTV on interest-only and the remainder on a capital and repayment basis.
Jaedon Green, Leeds Building Society’s director of product and distribution, said: “It’s now a year since we launched our part and part mortgages.
“These won an industry award for product innovation and we continue to improve our criteria.
“We listened to feedback from intermediaries and improved lending criteria on part and part to accept sale of property as a repayment strategy for the interest only portion of the mortgage.
“The range is suitable for remortgage and home purchase and offers a choice of fee and incentive combinations.
“As anticipated when we launched part and part, we’ve seen particularly strong demand for remortgages from homeowners with interest only mortgages.
“Part and part can help borrowers who’ve yet to make any progress paying down their original interest only loan to start reducing their debt without the payment shock of switching to a full repayment mortgage.”
