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.