Interest only repayment strategies

For interest only mortgages, applicants must provide a clear and believable method of repayment with suitable repayment evidence required. These include the following:

  • Investment properties (UK)
    80% of the equity (min £50k equity)
  • Second homes (UK)
    70% of the equity (min £50k equity)
  • Stocks & Shares/Unit trusts/Investment bonds/OEICs (UK)
    80% of the value (min £50k equity)
  • Endowments (UK)
    100% of projection (middle growth figure)
  • Money purchase pensions (UK)
    25% of current fund value (min £500k)
  • Final salary pensions (UK)
    25% of current fund value (min £250k)
  • SIPPs (UK)
    Can be considered on a case by case basis (min 25% of fund value. Please refer where the customer has other substantial pension arrangements)
  • Cash (UK)
    100% of current balance held
  • Sale of main residence (UK)
    Can be considered alongside other repayment vehicles

Only UK based investments quoted within the FTSE index held in sterling are acceptable. 

Step-by-step guide

Your step-by-step guide to the key stages.

Find out more about the key stages