Mortgage Strategy - Clydesdale rethink on interest-only criteria
Clydesdale Bank has loosened its criteria for borrowers looking to take out an interest-only mortgage.
The lender has increased the maximum age for borrowers to 70, up from 65, as well as reducing the minimum loan size from £300,000 to £100,000.
Where borrowers are using sale of the property as their repayment vehicle, they must hold at least £300,000 in equity at the point of taking out the mortgage. Previously, borrowers were required to hold £400,000 in equity.
Trinity Financial product and communications manager Aaron Strutt says: “I think any easing of interest-only acceptance criteria is welcome at the moment because some of the lenders’ interest-only policies are particulary tough. It is definitely a positive development for borrowers that Clydesdale has taken this step.”
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