Scottish Widows hikes minimum interest-only mortgage equity amount to £400,000
Scottish Widows Bank has raised the minimum amount of equity from £200,000 to £400,000 if the sale of the property is used as an interest-only repayment vehicle.
The bank has also reduced its maximum term for interest-only so borrowers will need to repay the mortgage by their 70th birthday rather than their 80th birthday if you take a capital repayment mortgage.
The minimum income for single or joint applicants is £50,000 if the interest-only repayment vehicle is an endowment, investment, pension or sale of a second property.
For other repayment vehicles (bonus, cash, sale of mortgaged property) there is already a minimum income requirement of £100,000 sole and £150,000 joint applications.
Aaron Strutt, product director at Trinity Financial, says: “It is unusual for a lender to double the minimum amount of equity required to qualify for interest-only when the sale of the property is repaid.
“Many of the lenders have eased their interest-only policies to attract wealthier borrowers with larger deposits and those with lots of equity in their property.”
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