Earlier this year the Yorkshire-based mutual extended its interest-only offering to include ‘part and part’ mortgages – where up to 50% of the loan is on an interest-only basis with the remainder on a capital and repayment deal.

The building society said since the launch around 80% of all applications had been for remortgage deals and this had prompted it to launch new fee-free products.

The two new fee-free deals are a 2.29% two-year fixed rate interest-only remortgage, available up to 50% loan-to-value.

A 2.49% two-year fixed rate part and part interest-only remortgage is also on offer up to 75% LTV

Both remortgage deals come with free valuations for properties worth up to £500,000, the lender said.

“Since we introduced part and part interest only mortgages two months ago, the vast majority of applications have been for remortgages,” said Martin Richardson, Leeds Building Society’s business development general manager.

“This is broadly in line with what we expected – we anticipated part and part would appeal in particular to existing interest only borrowers who had yet to make any progress paying down their original loan.

“This alternative offers them the opportunity to start reducing their outstanding capital without the payment shock they’d experience if they changed to a full repayment mortgage. This category of borrowers can include existing interest only homeowners who may be facing an endowment shortfall.”