View more on these topics

Leeds cuts interest-only LTVs by 10%

Leeds Building Society has cut the maximum LTV it will lend on interest-only mortgages to 75%.

The lender previously offered interest-only mortgages up to 85% LTV.

It says the latest limit applies irrespective of the repayment vehicle in place.

But Leeds says that it will still accept split mortgages, such as an 85% LTV deal where 75% is an interest-only loan and the remaining 10% is on repayment.

This change came into effect on June 8 2011, but the society has given brokers 21 days to provide any extra documentation needed.

The move by Leeds follows similar restrictions on interest-only mortgages from other lenders, with Halifax lowering its LTV limit on interest-only from 85% to 75% earlier this year.

Recommended

Northern Rock shaves rates on some mortgages

Northern Rock has cut rates on some of its residential and buy-to-let mortgage ranges by up to 0.50%. It is offering a two-year fixed rate deal at 2.99% on up to 70% LTV.

ANDREW BADDELEY-CHAPPELL, HEAD OF MORTGAGE STRATEGY AND POLICY, NATIONWIDE
2

Economic tracker – June 2011

Our monthly economic tracker provides data and expert commentary on the health of the housing market

Tesco’s mortgage project on track

Supermarket giant Tesco says it is on track to launch into the mortgage sector in the coming months. In a Q1 management statement last week, it revealed Tesco Bank increased revenue by 20% in Q1. It says: “The savings and loan platforms have now started operating for new customers. “This will accelerate as we launch […]

Newsletter

News and expert analysis straight to your inbox

Sign up