Leeds BS restricts interest-only to 75% LTV

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

The lender previously offered interest-only mortgages up to 85% LTV and says the new limit applies irrespective of the repayment vehicle in place.

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

The move 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.