Over the past few weeks several new Interest-Only mortgage products have been introduced by lenders – an option that had all but disappeared in recent years. There are restrictions however, with the new interest only criteria requiring a minimum income of £75K in order to qualify, plus a higher average loan-to-value (LTV) limitation.
NatWest has announced its plans to re-enter Interest-Only while Kensington raised its LTV and offered a more flexible approach to repayment strategies. Both set their maximum LTVs at 75% and placed minimum income restrictions on applicants; Kensington at £75,000 and NatWest at £100,000, with further restrictions if the repayment strategy is to eventually downsize.
Interest-Only mortgages are not an option to would suit everyone, but wider availability of these products is another sign that lenders are offering more variety and demonstrates that there are a plethora of options available when considering taking out a new mortgage on a property – it also shows that seeking the right independent advice, based on an understanding of all available loan deals across the industry, is always important when considering your options.
Here at The Financial Planning Group, we are able to secure a mortgage deal six months ahead of your current deal ending, which makes it possible for our clients to reserve the best rates – regardless of what the market does in that period.
To speak Steve Padgham about your property finance or mortgage requirements, please call him on 020 8614 4782, or e-mail firstname.lastname@example.org.