More Commentary
More Commentary
Press Commentary Press Commentary Archive The Daily Express The Daily Telegraph The Telegraph The Times and The Sunday Times BBC News Daily Mail and Mail on Sunday Financial Times Mortgage Strategy

Nationwide's interest-only ban kicks in

Aaron Strutt Image

Nationwide Building Society's ban on interest-only mortgages has come into force and all mortgage applications must now be taken on full capital repayment. It is not unusual for a lender to tighten their interest-only lending policy and ask for proof of a repayment vehicle, such as an ISA or an endowment policy, but Nationwide has gone one step further.

Aaron Strutt, a broker at Trinity Financial, says: “Nationwide reported that less than 3% of their applicants requested interest-only and there is simply not the demand, but I think this is highly unlikely. “There are still lenders offering interest-only particularly on larger loans. One lender we work with is happy to put half of the mortgage on pure interest-only and write annual overpayments into the mortgage contract.

October 12, 2012

As seen in
sunday times telegraph financial times bbc news the express the times
Get Started

Get started today

Speak to one of our mortgage experts. Either book an appointment to come and see us, or request one of our experts to call you.

Book a Consultation Talk to an Expert