Contractor friendly lender, Leeds Building Society, have made changes to their interest only policy and improved their product range, set to benefit many of our contractor clients.
The products allow contractors to borrow up to 75% loan to value, with a maximum of 50% on an interest only basis, and part on repayment. In addition, the lender will now accept sale of property as a repayment strategy at the end of the term.
Leeds will use a multiple of the contractor’s full daily rate as the basis of their calculations and this will give them a maximum lending ability. The view taken is simply that as a contractor the only person choosing not to draw all of their income in a traditional way, is themselves.
Martin Richard of Leeds Building Society said: “As anticipated, part and part has been particularly popular for remortgages as it offers borrowers currently on full interest only the flexibility to start paying down their loan in a manageable way.
“Part and part reduces the payment shock of moving to a full repayment mortgage for homeowners who’ve yet to reduce the capital they owe, because of an endowment shortfall, for example.
“It’s also relevant to high net worth borrowers, who are looking to use an interest only mortgage as part of a wider investment strategy.”
If you would like more information about obtaining an interest only mortgage as a contractor, call us on 01489 555 080 to speak with one of our experienced consultants.
Article By: Ratchelle Deary at Contractor Mortgages Made Easy
Media Contact: Ratchelle Deary, Public Relations Manager
Tel: 01489 555 080