Leeds has launched a mortgage range aimed at people looking to buy second homes, in response to borrower and broker demand.
A two-year fixed rate mortgage is available at 1.6 per cent up to 75 per cent loan-to-value (LTV), with free standard valuation on properties worth up to £1m.
Alternatively, borrowers can opt for a five-year fix at 2.35 per cent, which is also available up to 75 per cent LTV and comes with free standard valuation on properties worth up to £500,000.
Early repayment charges on the five-year deal are 5 per cent for the first two years, falling by 1 percentage point for each subsequent year.
The maximum interest-only element on both products is 70 per cent LTV. The sale of the property is accepted as a repayment strategy, subject to criteria, and up to 10 per cent capital repayments are allowed each year.
Jaedon Green, Leeds Building Society’s director of product and distribution, said: “We were receiving applications from an increasing number of home owners wanting to buy a second property.
“Building on our extensive experience in holiday let, our new range provides an ideal complement for those seeking a second home for their own use.”
Rebecca Robertson, director and financial planner at Chatham-based Evolution for Women, said: “I think that sounds like a fantastic product and there needs to be more solutions around second family homes.
“There are people with equity in their houses who have paid off the mortgage and have children wanting to buy, or they need to move their parents closer to them.
“There needs to be more flexible criteria around second homes, because it is an area that is going to be a growing market.”
simon.allin@ft.com
