Leek United BS caps interest-only LTV at 50%

Leek United Building Society has become to latest lender to tighten its interest-only criteria by limiting its maximum loan-to-value on this type of lending to 50%.

Previously the building society lent up to 75% LTV on an interest-only basis.

The building society has also placed a minimum property valuation of £100,000 where it lends outside the area serviceable by its branch network, which it defines as 20 miles away from one of its branches.

Earlier this month, ING Direct and Newcastle Building Society cut their maximum loan-to-values on interest-only lending from 75% to 50%. Principality Building Society also restricted its interest-only lending to three products but kept its maximum LTV at 85%.