Mortgages

Leeds Building Society is a responsible lender. We want to make sure that you can comfortably afford the repayments on any amount we may lend you. This amount will depend on your income and your present financial commitments such as loans, credit card debts and other regular expenses. A detailed assessment of whether the Society is able to make an offer of a loan for the amount you require will be made once a full application is submitted.

How much is your income?

The most important element in deciding how much we’ll lend you is your income. If you’re buying your home with someone else, then we’ll consider both of your incomes.

Naturally, we’ll consider long-term bonuses, overtime and commission provided all payments are guaranteed and part of your regular disposable income. We will also consider regular overtime, bonus and commission but will only include half of the value in our calculations.

To work out how much this means you could be able to borrow, simply use the table below.

E.g. If you were borrowing 100% of the value of the property and your salary is £25,000 and your partner’s salary is £10,000, your borrowing limit would be:

£105,000 based on £25,000 x 3.00 = £75,000 + £10,000 x 3.00 = £30,000.

Standard Income Multiples
Loan to Value	Loan Amount	Single (up to)	Joint (up to)
100% max	Up to £250,000	3.75 x	3.00 x or 3.75 x main plus 1 x second
95% max	Up to £300,000	3.75 x	3.00 x or 3.75 x main plus 1 x second
Enhanced Income Multiples
Loan to Value	Loan Amount	Single (up to)	Joint (up to)
90% max	Up to £400,000	4.00 x	3.25 x or 4.00 x main plus 1 x second
85% max	Up to £500,000	4.25 x	3.50 x or 4.25 x main plus 1 x second
80% max	Up to £750,000	4.50 x	3.75 x or 4.50 x main plus 1 x second
75% max	Up to £750,000	4.50 x	3.75 x or 4.50 x main plus 1 x second
50% max	Up to £750,000	4.50 x	3.75 x or 4.50 x main plus 1 x second

What's your property worth?

Before we make you a mortgage offer, we’ll need to take into account the value of any property you’re looking to buy or remortgage. This may include arranging for a valuation to be carried out. This is solely for our purposes and should not be taken as a guarantee of the property’s value, nor that the property is in good condition throughout. With this in mind, we recommend that you arrange for a professional surveyor or valuer to inspect the property on your behalf. Peace of mind is priceless - and we want your new home to be a source of pleasure to you.

It’s important that you bear in mind your loan may not cover the total value or purchase price of your property. This means that if you’re moving to a new home, rather than remortgaging, you may need to use some money of your own as a deposit. The Loan to Value (LTV) percentage refers to how much the loan will cover of the value or purchase price of your property - whichever is lower.

What if interest rates go up?

It’s worth considering what the effect of any future interest rate rises might have on your finances. Even if you choose a fixed or capped rate mortgage, the interest rate will normally revert to our Standard Variable Rate at the end of the Benefit Period (this term is defined in the "Jargon Buster" section of this guide). Your Mortgage Advisor will be able to help you with budget planning – but it’s important that you think carefully about what you can really afford.