Clydesdale improves interest-only criteria

by Aaron Strutt

Jun 25 2016

Clydesdale Bank has improved its part interest only and part repayment criteria.

For part interest only and part repayment mortgages of up to £750,000 the bank will allow a total loan-to-value (LTV) of 80% - with up to 75% LTV available on interest only and the remainder to be taken on capital and interest basis. For properties in the Greater London area, this is available for loans up to £1,500,000.

Where downsizing or sale of the property is being used as the interest only repayment vehicle for part interest only and part repayment mortgages, the £300,000 equity requirement will now be based on the equity position at the end of the mortgage term. The bank previously required £300,000 at the start of the application.

Aaron Strutt, product director at Trinity Financial, says: “Part and part mortgages used to be very popular, particularly with younger borrowers struggling to secure affordable loans. Clydesdale has specific interest only rates and they are competitively priced.

“With the bank’s new 80% loan-to-value interest only products, customers can borrow up to 75% loan-to-value on interest only, with any additional lending on a capital and interest basis. This is available for loans up to £750,000, increasing to £1,500,000 for properties in the Greater London area.”

Where any element of the loan is on interest only, Clydesdale’s interest only maximum term applies – 25 years to finish before the earlier of age 70 or the customer’s anticipated retirement.

For help to secure an interest only mortgage call Trinity on 020 7016 0790.