Santander improves its interest-only mortgage proposition
Santander for Intermediaries has improved its interest-only mortgage proposition making it one of the most attractive in the industry.
The bank currently allows up to 50% of the mortgage on interest-only and the remaining 25% on capital repayment, but from April 15 this will increase to 50% on interest-only and 35% on capital repayment.
To qualify for Santander’s standard interest-only mortgages there must be a minimum of £150,000 equity in the property at application. However, for part and part (i.e. where combined with capital and interest) there needs to be a minimum of £150,000 equity in the property at the end of the mortgage term.
Aaron Strutt, product director at Trinity Financial, says: “The bigger lenders are doing more to attract borrowers and they are easing their acceptance criteria because their rates can't get much better.
“Part and part mortgages used to be a lot more popular because they make the monthly costs so much lower, but they are not so widely available at higher loan-to-values.”
Income stretch mortgages
Santander currently offers up to 5.5 times salary for applicants earning over £100,000 capped at 75% loan-to-value. It also has a selection of competitively priced fixed and tracker rates.
Trinity Financial has access to a building society providing 60% of the mortgage on interest-only and the remaining 35% of capital repayment. The mortgage is limited to £250,000.
Call Trinity Financial 020 7016 0790 to secure an interest-only mortgage
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