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.