Fixed rate and Offset Interest-only products
Our Interest-only product range includes Fixed rate and Offset mortgages that could be a great choice for many of your residential clients.
There’s no minimum income requirement, but your clients will need to meet our lending criteria and the same affordability requirements as if they were applying for an equivalent repayment mortgage. They’ll also need to demonstrate they have an acceptable repayment strategy.
If your client took out their residential Interest-only mortgage with us before September 2020, we apply a different policy. View our policy for existing Interest-only clients >>
Age limits applyShow
All applicants must be aged 18 or over, and no more than 75 years old at the end of the mortgage term.
Part repayment/part Interest-only mortgagesShow
We don’t offer part repayment/part Interest‐only mortgages.
The maximum LTV is 50%Show
The total loan amount mustn’t exceed 50% LTV, either at the time of application or during the term of the mortgage.
Interest-only products and overpaymentsShow
Your client can make overpayments to their mortgage of up to 10% of the capital each year. Their mortgage terms and conditions will give them all the details.
Your client will be able to apply for additional Interest‐only borrowing as long as the LTV doesn’t exceed 50% for the whole mortgage and there is still at least £300,000 equity left in the property. Any additional borrowing is subject to lending criteria and product availability at the time of application and will need to be on a new product, unless your client is on an Interest‐only Offset.
Changing to a repayment mortgageShow
Your client can apply for a new repayment mortgage at any time, subject to our lending policy. ERCs may apply – their mortgage terms and conditions will have all the information they need.
Porting an Interest-only mortgageShow
All of our Interest‐only mortgages are portable so your client could apply to take it with them if they move to a new house. They’ll still need to have an acceptable repayment plan in place and we’ll need to see evidence of that.
Downsizing to a smaller propertyShow
If your client is downsizing, they can keep their Interest‐only mortgage as long as they still have £300,000 equity in the new property and a maximum LTV of 50%.
Paying off an Interest-only mortgage earlyShow
ERCs may apply – the mortgage offer will have details of any charges we’ll make. However, if at the end of the mortgage there is less than six months of the benefit term remaining, we’ll waive any ERCs.
If your client is struggling to meet their mortgage paymentsShow
Or if they want to discuss any changes to their repayment plan, they should contact us as soon as possible on 0800 121 8899.