Skipton still offering interest-only mortgages

by Aaron Strutt

Sep 01 2014

Skipton for Intermediaries is one of the largest building societies still offering interest-only mortgages – but their tight acceptance criteria can make them difficult to qualify for.

Skipton’s interest-only mortgages are available up to the first 70% loan-to-value (ltv).  For applications up to 80% ltv, a maximum of 70% ltv can be taken on interest-only but the remaining 10% must be taken on a capital and interest basis.

Their interest-only mortgages are not available to first-time buyers and the lender requires a minimum income of £40,000 to qualify. The maximum loan size is £500,000.

Borrowers will also need to prove they have a suitable repayment strategy in place to pay back the mortgage.

For example, Skipton accepts endowment policies on the condition they are provided through a regulated firm. Other acceptable repayment vehicles include: equity in other UK properties, also shares and bonds held as investments. Cash savings in a UK deposit account are also suitable.

Aaron Strutt, product manager at Trinity Financial, says: “Many of the largest lenders have pulled out of the interest-only mortgage market over the last few years and it is more of a niche product. However, for the right clients it is still available."

If you would like help to secure an interest-only mortgage, call Trinity Financial on 020 7016 0790.