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Leeds BS cuts interest-only LTV to 50%

Leeds Building Society has cut its maximum loan-to-value for interest-only lending from 75 per cent to 50 per cent.

The changes take effect immediately. Last month, the building society cut its maximum LTV for interest-only loans where the repayment strategy is the sale of the property from 70 per cent to 50 per cent.

But these changes affect all borrowers, regardless of the repayment vehicle they have in place.

The changes do not affect the lender’s buy-to-let range.

Earlier this week, Skipton Building Society cut its maximum loan-to-value for interest-only lending from 75 per cent to 60 per cent.

Last week, Money Marketing revealed Santander had further tightened its interest-only criteria and will no longer accept pensions, the sale of a second property, bonuses or cash savings as repayment vehicles and revealed that NatWest Intermediary Solutions had temporarily suspend lending through brokers.

Both Nationwide Building Society and Coventry Building Society’s also decided to cut their maximum LTV for interest-only lending from 75 per cent to 50 per cent last week. In February, Santander decided to cut its maximum LTV on interest-only to 50 per cent from in February.

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