Clydesdale improves their interest-only acceptance criteria

by Aaron Strutt

Mar 14 2014

Clydesdale Bank has made changes to their interest-only acceptance criteria as they look to offer larger mortgage loans.

Previously when applicants declared they were planning to downsize to a smaller property and use the remaining funds to pay off their mortgage, the lender asked for 50% equity in the property to qualify for interest-only. This has now been lowered to 25% providing there is £300,000 equity in the property.

Aaron Strutt, product manager at Trinity Financial, says: “It seems pretty reasonable to offer interest-only mortgages to wealthier borrowers.

“Clydesdale's move shows that the high-street lenders have the ability to ease criteria even with so many new mortgage regulations being introduced into the market.”

March 14, 2014