Coventry for Intermediaries has returned to the interest-only mortgage market after pulling out in 2012. The building society has introduced a range of fixed and offset products for residential borrowers.
There is no minimum income requirement to qualify for Coventry's interest-only products although borrowers will need to have sufficient income to support an equivalent repayment mortgage.
Applicants will need a 50% deposit to qualify for the purchase and remortgage products and have a minimum of £300,000 equity left in the property after the mortgage amount required has been taken into account.
Coventry requires borrowers to have evidence of an acceptable repayment plan and this could be the sale of investments or property, or a pension lump sum and must be based on current value, not projected forecasts.
The lender has a range of two or five-year interest-only products available, including an interest-only offset product, a mortgage that combines the freedom of interest-only with the flexibility of our simple offset.
Aaron Strutt, product director at Trinity Financial, says: "If you are looking to minimise your monthly repayments then interest-only is a good option providing you have a long term plan to repay the mortgage.
"There is a good choice of interest-only products on the market but most of the lenders have minimum income requirements. Our brokers consistently arrange part interest-only and part capital repayment mortgage for our clients so their repayments are low and some of the outstanding balance is still being repaid."
Coventry tends to offer competitively priced fixed and variable rates and regularly tops the mortgage best buy tables. The society's new two-year fix interest-only deal is available below 1.5% and the five-year fix is below 2.3%. Both rates have £999 arrangement fees and early repayment charges.
If you do not have 50% equity in your property or a 50% deposit to put down if you are buying a home, there are lenders offering part interest-only when you have a 25% deposit.
Call Trinity Financial on 020 7016 0790 to secure an interest-only mortgage