Virgin Money and Leeds BS bring new products to the market

Virgin Money has launched a new range of London Help to Buy Equity Loan mortgages, while Leeds Building Society has expanded its interest-only range of mortgages available for larger loans.

Following its recent launch of Help to Buy Equity Loan products for ScotlandVirgin Money has introduced a new range of London Help to Buy Equity Loans.

The new range includes a two-year fixed rate 55% loan to value (LTV) mortgage at 1.78%(4.31% APRC) and a five-year fixed rate mortgage at 2.40%(3.88% APRC).

Both products carry a £995 arrangement fee and are offered with £500 cashback.

Leeds Building Society's new interest only mortgage range offers larger loans of up to £1.25m.

Products available include a two-year interest only mortgage at 1.60%(5.43% APRC), for up to 50% LTV and a 1.70%(5.39% APRC) two-year fixed rate part and part interest only mortgage for mortgages up to 75% LTV.

The new deals include a free valuation, along with fees assisted legal services for standard remortgages, and a £1,999 fee, and are available for purchase and remortgage.

With its new range, Leeds is targeting high worth borrowers who are looking to use their interest only mortgages as part of a wider investment strategy.

The range is also designed to appeal to home buyers who can expect their future income to rise significantly, after they’ve completed professional qualifications, for example.

The lender introduces this new range one year after it launched its part and part mortgages, which are available up to 75% LTV, with up to 50% LTV on interest only and the remainder on a capital and repayment basis.

Part and part mortgages, the lender says, can help borrowers who’ve yet to make any progress paying down their original interest only loan to start reducing their debt without the payment shock of switching to a full repayment mortgage.