Nationwide for Intermediaries has improved its mortgage acceptance criteria so homebuyers can access interest-only for property purchases as well as remortgages.
Interest-only lending will be offered for purchase and remortgages up to a maximum of 60% loan-to-value and borrowers will require minimum equity in their homes of £300,000 in London, £250,000 in the South East and £200,000 across the rest of the UK, to qualify.
Aaron Strutt, product director at Trinity Financial, says: "Nationwide is not charging a premium for its interest-only mortgages and they are available from 1.24%. The maximum loan size is £2 million and the interest-only repayment vehicle has been restricted to the sale of the main residence only.
"Anyone applying for Nationwide's interest-only products will need a minimum income of £75,000 for sole applications rising to £100,000 for joint incomes, and there is a maximum term of 25 years or retirement age if that is sooner."
Interest-only lending remains a small but important part of the market and to access these products borrowers require a good level of equity in their home and higher incomes. There are a lot more lenders offering interest-only mortgages than there were a few years ago.
First-time buyers are not eligible for Nationwide's interest-only mortgages, and they also can’t be used in conjunction with any other scheme such as shared ownership or help to buy. Applications will also not be accepted if you have a secured loan and you are not settling it, or if you are retired, or the mortgage term will take you into retirement.
Nationwide for Intermediaries re-entered the residential interest-only market for remortgages in April this year after an eight-year absence.
Call Trinty Financial on 020 7016 0790 to secure an interest-only mortgage or book a consultation