Residential policy
Income
Minimum income of £75,000 sole or joint.
All acceptable income will count towards the minimum at their full levels, except for rental income which we do not include. For example, we will use 100% of a 2 year average bonus (or most recent if lower) rather than the 60% of it that we use for affordability and loan to income purposes.
Debt consolidation
Debt consolidation is not allowed on interest only. The amount being consolidated must be on capital and interest.
Age
Maximum age at the end of the mortgage term 75 and 364 days.
Lending into retirement is not allowed if downsizing is the repayment vehicle.
Availability
Our standard maximum term of 40 years applies, and interest only is available for remortgage and purchase, but not for first time buyers.
Maximum LTV and loan size
- Full interest only – up to 75% LTV for loan sizes of £2m or less
- Part and part – up to 85% LTV for property values of £750k or less, 80% LTV for property values over £750k up to £1.25m, and 75% LTV for property values over £1.25m (up to our maximum loan size of £2m). No more than 75% LTV on interest only
- The maximum total LTV for downsizing or sale of another property is 65%. This cannot be exceeded by using another repayment vehicle or capital & interest
For more information, view our maximum LTV criteria.
Repayment vehicles
Downsizing
Maximum 65% LTV. This cannot be exceeded by using capital & interest. Downsizing cannot be combined with any other repayment vehicle. Minimum equity at the start of the mortgage £300,000.
Sale of other property
Maximum 65% LTV. This cannot be exceeded by using another repayment vehicle or capital & interest. The equity in the other property/properties must be 110% of the amount on interest only, and we’ll carry out automated valuations to establish values.
Pension lump sum
Maximum 75% LTV. The total LTV can be topped up 85% using capital and interest. The tax free lump sum (25% of the mid-point projected value at retirement) must be 100% of the amount on interest only. The pension must have been in place for at least 12 months.
Investments (like Stocks & Shares, ISAs, Unit Trusts, OEICs)
Maximum 75% LTV. The total LTV can be topped up 85% using capital and interest. The investments must have been in place for at least 12 months. If a projected maturity value is available we can use the mid-point, which must be 100% of the amount on interest only. If a projected maturity value is unavailable we will use the current value, which must be 100% of the amount on interest only.
FTSE 100 share portfolio
Maximum 75% LTV. The total LTV can be topped up 85% using capital and interest. The current balance must be 110% of the amount on interest only. A share portfolio must have been held for at least 12 months and the shares must be FTSE 100.
Endowments
Maximum 75% LTV. The total LTV can be topped up 85% using capital and interest. The mid-point projected maturity value must be 100% of the amount on interest only. The endowment must have been in place for at least 12 months and the maturity date must be on or before the end of the mortgage term.
All repayment vehicles must be held in sterling.
Allowable Income
To calculate whether customers meet our interest only minimum income requirement we include all forms of income listed in our income policy at 100%, except for rental income which we do not include.
We include 100% of variable income (rather than the 60% used for income multiples and affordability).
View packaging requirements.