NatWest for Intermediaries has lowered the minimum income requirement borrowers need to qualify for its interest-only mortgages.
As part of a host of other criteria changes the bank has reduced the minimum income at least one applicant requires to £75,000 each year. It has been reduced from £100,000 and excludes discretionary bonuses.
If the applicants plan to use the sale of the property as a mortgage repayment vehicle, the maximum loan-to-value remains at 75%. The interest-only element cannot exceed 50% of the property value with the remaining 25% on a full capital repayment basis.
Where there is an element of interest-only, there must be a minimum of £200,000 equity in the property at the end of the mortgage term when the capital repayment element has been repaid.
NatWest’s interest-only mortgages are available to all borrowers meeting the minimum requirements including first-time buyers and those remortgaging.
Aaron Strutt, product director at Trinity Financial, says: “If you are looking for an interest-only mortgage there is a wide selection of lenders to choose from, although some of the lenders have tougher criteria than others.
“Santander has relaxed its interest-only policy by removing its minimum income requirement, and it raising the maximum age from 65 to 70. If the sale of the property is being used as a repayment vehicle, there needs to be a minimum of £150,000 amount of equity at the end of the mortgage term.”
To secure an interest-only mortgage call Trinity Financial on 020 7016 0790.