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Key Takeaways
- Leeds Building Society does not offer equity release; instead, they provide traditional mortgage products, including a Retirement Interest-Only (RIO) mortgage as an alternative.
- Their RIO mortgage allows homeowners aged 55-80 to borrow with monthly interest payments, avoiding interest roll-up but requiring affordability checks.
- A RIO mortgage offers long-term security, flexibility in terms of income sources, and no end date, making it a potential option for interest-only mortgage holders.
- Potential drawbacks include maintaining monthly interest payments, facing affordability assessments, and possibly incurring Early Repayment Charges.
- Consulting a financial advisor is essential to determine whether a RIO mortgage aligns with personal financial goals and circumstances.
Wondering about Leeds Building Society equity release?
If you’re nearing retirement and exploring your financial options, you may have come across equity release and some of the many providers who offer these products.
Could Leeds Building Society be one of them?
Read on as we help clarify your options.
COMMENT: TimeBank.org.uk is an independent third-party data provider, and the information shared here reflects their views alone, not necessarily those of Leeds Building Society. This article is for informational purposes only and should not be considered financial advice or a recommendation to engage with any products offered by Leeds Building Society.
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- Who offers the LOWEST rates available on the market.
- Who offers the HIGHEST release amount.
- If you qualify for equity release.
Who Are Leeds Building Society?
Leeds Building Society is a mutual organisation that started life as the Leeds Union Operative Land and Building Society in 1845.1
As a member-owned institution, it works to benefit its members rather than to generate profits for shareholders.
Leeds Building Society offers a range of financial products, including savings accounts, mortgages, and insurance.
Does Leeds Building Society Offer Equity Release?
Leeds Building Society doesn’t offer equity release.
Instead, the society provides more traditional mortgage products.
Does Leeds Building Society Offer Equity Release Alternatives?
Yes, Leeds Building Society offers an equity release alternative in the form of a Retirement Interest-Only (RIO) mortgage.2
Depending on your circumstances and whether you meet their eligibility criteria, you may also be able to borrow more on your current mortgage.3
Comparing Their Alternative to Equity Release
Comparing their alternative to equity release may help you form a picture of the suitability of a RIO mortgage.
To illustrate this, let’s see how the average lifetime mortgage differs from Leeds Building Society’s RIO.
In short:
| Leeds Building Society RIO Mortgage | Average Lifetime Mortgage | |
|---|---|---|
| age of applicants | between 55 and 80 | minimum 55 |
| max. LTV | 55% | 20% to 60%5 |
| affordability checks | yes | no |
| interest rate | 7.6% to 8.0% (APRC)5 | 6.47% (APR)*6 |
| monthly payments | interest | not mandatory, but depends on product |
| repayment | sale of home | sale of home |
*This is the average rate attached to new lifetime mortgage plans launched in October 2024, according to Advise Wise.
Could Leeds Building Society’s Alternative to Equity Release Be Right for You?
To find out if Leeds Building Society’s alternative to equity release could be right for you, take a look at the benefits and drawbacks of their RIO mortgage.
Benefits of Leeds Building Society’s Equity Release Alternative
The benefits of Leeds Building Society’s equity release alternative (a RIO mortgage) include the fact that you’ll only have to pay interest each month and not make capital repayments.
Other benefits are:
- Option for Interest-Only Holders: A RIO mortgage could be an option for homeowners coming to the end of an Interest-Only mortgage without a clear route to repayment.
- No End Date: The mortgage continues for life, providing long-term security.
- Flexibility: Suitable for those with diverse income streams, like pensions, rental income, savings, dividends, and more.7
- No Interest Roll-Up: As you’ll be making monthly interest payments, the interest won’t compound.
Drawbacks to Leeds Building Society’s Equity Release Alternative
The drawbacks to Leeds Building Society’s equity release alternative include the fact that you’ll be obliged to keep up monthly interest payments.
Other drawbacks include:
- Affordability: You’ll have to prove your ability to repay the monthly interest.
- Fees: Leeds Building Society charges a product fee and a mortgage exit fee of £199 on their RIO product.8
- Repayment: Your home will eventually be sold to repay the loan.
- Early Repayment Charges: You may be penalised heavily if you decide to repay the loan early.9
Consulting an Advisor
Consulting an advisor is a very important step when you’re trying to decide if a RIO mortgage from Leeds Building Society could be an option for you.
Discussing the pros and cons of this product with a qualified financial advisor will help you work out if it aligns with your needs and future plans.
How Did We Review the Info on Leeds Building Society?
We reviewed the info on Leeds Building Society by studying their equity release alternative, a RIO mortgage.
We also investigated the society’s standing in the financial sector by looking up their industry awards.
Their recent awards include:
- Best Shared Ownership Mortgage Lender at the 2024 What Mortgage Awards.10
- Best Lender Website at the 2024 What Mortgage Awards.11
- Contact Centre of the Year—Under 250 Seats at the 2024 North East Contact Centre Awards.12
Leeds Building Society Client Reviews
Leeds Building Society client reviews can be a helpful starting point when trying to find out if this provider may be a good fit.
Customer ratings can be found online:
- Trustpilot Leeds Building Society Reviews13
- Smart Money People Leeds Building Society Reviews14
- MoneySavingExpert Leeds Building Society Discussion15
- Review Centre Leeds Building Society Reviews16
Contact Leeds Building Society
You can contact Leeds Building Society in a few different ways.
Your options include:
- phone: 03450 505 062 (new mortgage enquiries)
- online form: available here
- email: complaints@leedsbuildingsociety.co.uk
- post: Complaints Team, Leeds Building Society, 26 Sovereign Street, Leeds, West Yorkshire LS1 4BJ
Leeds Building Society’s Regulatory Details
Leeds Building Society’s regulatory details may be of use if you’re considering the society for your retirement mortgage needs.
Trading Names
Leeds Building Society.
FCA Permitted Services
- Accepting Deposits
- Advising on investments (except on Pension Transfers and Pension Opt-Outs)
- Arranging (bringing about) deals in investments
- Assisting in the administration and performance of a contract of insurance
- Dealing in investments as agent
- Making arrangements with a view to transactions in investments
- Administering a regulated mortgage contract
- Advising on regulated mortgage contracts
- Arranging (bringing about) regulated mortgage contracts
- Entering into a regulated mortgage contract as lender
- Making arrangements with a view to regulated mortgage contracts
- Credit Broking
- Making arrangements with a view to transactions in investments
- Advising on P2P agreements
- Dealing in investments as principal
- Making arrangements with a view to transactions in investments
Regulators
- Financial Conduct Authority (FCA)17
- Prudential Regulation Authority (PRA)18
- Building Societies Association (BSA)19
Registration Numbers
- FCA Ref Number: 164992
- Mutuals Public Register Number: 320B
FCA & Mutuals Public Register Link
- FCA Link: Leeds Building Society
- Mutuals Public Register Link: Leeds Building Society
Common Questions
Does Leeds Building Society Offer Equity Release?
What Are the Pros and Cons of Equity Release vs. Remortgaging?
Can I Use a Retirement Interest-Only Mortgage Instead of Equity Release?
Are There Any Government Schemes That Can Help Instead of Equity Release?
What Are the Downsides to Equity Release Alternatives?
Can I Downsize Instead of Releasing Equity?
Where Can I Get Independent Financial Advice on Equity Release Alternatives?
Final Thoughts on Leeds Building Society’s Equity Release Alternatives
When weighing up your retirement options, it’s very important to start by casting a wide net.
Leeds Building Society may not offer equity release, but their RIO mortgage may turn out to be what you’ve been looking for.
Speak to a qualified financial advisor to discuss whether Leeds Building Society’s equity release alternative could be a suitable solution to your needs.
