Santander launches 40-year interest-only mortgages in criteria revamp
Santander for Intermediaries has started offering 40-year interest-only mortgages to borrowers keen to reduce their monthly costs.
The high street bank has lifted its maximum term on interest-only mortgages to 40-years from 25-years, in line with its capital and repayment mortgages.
It will also allow applicants with a combined overall income of £200,000 or more to access up to 75% loan-to-value rather than requiring a single applicant to earn at least £250,000.
Customers applying for an interest-only mortgage, who also intend to sell their property later as their way to repay the mortgage, must also now have at least £300,000 equity in the property, previously this was £250,000.
Finally, on residential fixed-rate larger loans, the minimum loan-to-value ratio for all mortgages between £1 million and £2 million will rise to 85% from 75%.
Aaron Strutt, product director at Trinity Financial, says: “Santander is opening up its interest-only products for more people while reflecting recent tax changes that improve people’s take-home pay in our affordability calculations, aim to address this and support more homeowners.
“Lots of lenders offer interest-only mortgages, but with a 40-year interest-only, Santander jumps up the pecking order over other high street lenders, such as Nationwide, where the maximum term in interest only is 25 years or retirement if sooner.”
Make overpayments via Santander's mortgage app
If you plan to take an interest-only mortgage through Santander and want to make overpayments, it is worth downloading the Santander mortgage app.
Through the app, you can adjust overpayments and manage your monthly costs. You can also track your mortgage balance, term and property value.
Call Trinity Financial on 020 7016 0790 to secure an interest-only mortgage, book a consultation, or complete our mortgage questionnaire.
The information contained within was correct at the time of publication but is subject to change.
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