Are Leeds Building Society's equity release alternatives right for you?

With so many financial services providers on the market, choosing just the right one for you and your needs can be difficult.

Fortunately, we have mapped out the important things you need to know about Leeds Building Society, one of the largest building societies in the UK, and it's alternatives to equity release.

At SovereignBoss, we are committed to providing you with the latest and most relevant information on the equity release industry. Ready to find out more about what Leeds Building Society can offer you?

Therefore:

NOTE: SovereignBoss is an impartial and unconnected third-party information provider via this website, and the details replicated in this commentary represent the opinions of SovereignBoss only and may not reflect the views or opinions of Leeds Building Society. This article must not be interpreted as advice, nor is it a solicitation to conduct transactions in any financial product provided by Leeds Building Society.

What Is Equity Release?

An equity release mortgage is, in a nutshell, a loan plus interest that is paid back to the lender when the homeowner passes away or goes into permanent care.

Learn More: Equity Release Explained

Who Is Leeds Building Society?

Leeds Building Society is one of the top five largest building societies in the UK¹, and is based in Leeds, England.

It serves approximately 719,000 customers across the United Kingdom, who together hold almost £10bln in savings balances, and is the fifth largest building society in the UK.

In 1875, it was formally established as the Leeds and Holbeck (Permanent) Building Society², offering both deposit accounts and mortgages, and in 2005 it changed its name to Leeds Building Society.

Why Should You Consider Leeds Building Society?

You should consider Leeds Building Society because it has a proven track record.

Additionally, it is authorised and regulated in the UK by the Financial Conduct Authority (FCA)³ and the Prudential Regulatory Authority (PRA), and is a trusted building society in the UK.

It also offers a range of mortgages for those approaching or already in retirement, giving later-life clients more lending options.

What Are The Pros and Cons of Leeds Building Society?

The pros and cons of using Leeds Building Society include that it is the UK’s fifth largest building society, however it does not offer equity release.

More information:

Leeds Building Society Pros

The Leeds Building Society pros are:

• You can borrow a maximum of 55% of the value of the property (LTV).⁴
• It's RIOs are available to those between 55 and 80.
• There is no minimum equity requirement.

Leeds Building Society Cons

The Leeds Building Society cons are:

• Monthly repayment will be required.
• Your income will be assessed to determine affordability.
• Failure to make the monthly repayments could lead to you losing your home.

Does Leeds Building Society Offer Equity Release and Lifetime Mortgages?

No, Leeds Building Society does not offer equity release. 

However, it does have RIO mortgages as alternatives to equity release.

Does Leeds Building Society Have an Equity Release Calculator?

No, Leeds Building Society does not have an equity release calculator.

You can use our equity release calculator below to see how much approximately you can unlock from your home.

Leeds Building Society Customer Reviews and Ratings

You can view Leeds Building Society's customer reviews and ratings below.

• Leeds Building Society Reviews on UK.TrustPilot.com
• Reviews of Leeds Building Society on ReviewCentre.com
• Leeds Building Society Reviewed on SmartMoneyPeople.com

Leeds Building Society's Equity Release Alternative

Leeds Building Society's equity release alternative comes in the form of a retirement interest-only (RIO) mortgage.

In 2018, Leeds Building Society was the first national high street lender to launch a range of Retirement Interest Only (RIO) mortgages.

Aimed at older homeowners, RIO mortgages are interest-only mortgages with no set end date.

RIO mortgages are specifically designed to allow homeowners to use the sale of their home to repay their mortgage balance.

This can either be done upon the homeowner's death or when the last surviving partner moves into care.

Unlike an equity release lifetime mortgage, interest roll-up is not permitted on the Leeds RIO mortgage.

The homeowner will be required to make monthly mortgage payments for the life of the mortgage, which will consist only of interest on the amount borrowed.

How Did We Review the Information on Leeds Building Society?

We reviewed Leeds Building Society based on the following:

• Reputation and History – How many years they have been in business, customer reviews, and industry rewards received.
• Financial Strength – Ensuring it is going strong and has adequate funds to meet long-term commitments.
• Product Range – We favour companies offering a variety of equity release schemes with greater product flexibility.
• Interest Rates and Fees – We review competitive rates compared to industry averages and they must be fully transparent about rates and fees without hidden costs.
• Customer Service and Support – When and how it is available, response times, and available online educational resources. As well as online tools, like a calculator.
• Code of Conduct and Compliance – We only consider companies that adhere to recognised industry standards and codes.
• Industry Insights and Peer Reviews – We care about a company’s industry-wide reputation.
• Innovation and Technology – Is there a streamlined, digital application process?
• Client Testimonials – Success stories and the complaints resolution process.

This is an unaffiliated, independent review of Leeds Building Society.

Leeds Building Society Complaints

Leeds Building Society complaints can be lodged on its website. 

You can also write to the team at: 27, Sovereign Street, Leeds, West Yorkshire, LS1 4BJ, UK.

Alternatively, you can use a review site like Trustpilot⁵ or Feefo⁶ to leave a comment.

What Are Leeds Building Society’s Equity Release Alternatives’ Interest Rates?

Leeds Building Society offers fixed interest rates of between 5.97% to 6.28%* depending on the fixed term.⁷

The most recent interest rates can be seen here.

*While we regularly review our rates, these may have changed since our last update.

What Are Leeds Building Society's Fees?

Leeds Building Society's fees include a product fee, application fee and exit fee, though these depend on the plan you choose.

On certain plans the product and application fees are waivered.

Some of these fees can be refunded should your plan not complete.

Learn More About Leeds Building Society

Leeds Building Society, the UK’s fifth largest building society, offers a range of mortgage products to cater to individual retirement needs.

Originally formed as a mutual, Leeds Building Society has helped UK communities save and borrow since 1845.

Since the beginning, Leeds Building Society has been mutual. It's roots can be traced back to 1845 when the Leeds Union Operative Land and Building Society was founded.

Ordinary individuals struggled to find long-term loans and a place to call home back then.

Mutuals responded by allowing people in working areas to save and borrow, allowing them to purchase the home of their dreams while also supporting their families.

This is why the Leeds and Holbeck (Permanent) Building Society was formally constituted. By the end of its first year, 450 accounts had been opened, and it had lent a total of £16,000 in mortgages.⁸

Regulatory Details

Trading Names

Current

Leeds Building Society

Previous

Leeds and Holbeck Building Society

FCA Permitted Services

• Banking
• Insurance
• Mortgages and Home Finance
• Consumer Credit
• Pensions
• Investments
• Other Services

Regulators

• Financial Conduct Authority (FCA)
• Prudential Regulation Authority (PRA)⁹

Registration Numbers

• FCA Ref Number: 164992
• Mutuals Reg Number: 320B

FCA and Mutuals Public Register Links

• FCA Link: FCA Link
• Mutuals Public Register Link: Mutuals Public Register Link

Leeds Building Society Contact Number and Address

• +44 034 5050 5075
• 26, Sovereign Street, Leeds, West Yorkshire LS1 4BJ.

Common Questions

Conclusion

Although Leeds Building Society does not offer equity release, it is still a trusted and reputable option for RIO mortgages.

As one of the largest building societies in the UK, it is authorised and regulated in the UK by the FCA and PRA and adheres to their stringent guidelines.

These are just some of the reasons why you may consider Leeds Building Society's equity release alternatives to free up some funds.

The features mentioned and the amounts raised, are subject to the lender’s criteria, terms and conditions. These may take into account the age, health and lifestyle factors in order to provide an enhanced amount. To understand the features and risks, ask for a personalised illustration.