Top Nav (alt)

Repayment types

The default position is that Residential owner-occupier applications will be processed on a Capital & Interest Repayment basis, unless Interest-Only is specifically requested.

Interest Only will be considered for owner occupier applications. The only form of Mortgage Repayment Vehicle (MRV) that the Society will accept is sale of property/properties in the United Kingdom, either:

The sale of a property other than the mortgaged property, owned in the same names as the mortgage applicants. There must be sufficient equity in the property/properties to cover the interest only part of the loan. The LTV must not exceed 60% although applications split on a part Interest Only and Part Repayment basis will be considered to an overall maximum LTV of 80%, with the Interest Only part not exceeding 60%.

Alternatively, the sale of the mortgaged property itself will be considered, subject to a maximum LTV of 50% and a current minimum property value of £400,000. The feasibility of downsizing with reference to house prices in the chosen locality will also be considered. Applications split on a Part Interest Only and Part Repayment basis will be considered to an overall maximum LTV of 80%, with the Interest Only part not exceeding 50%.

Applicants will be required to provide confirmation, in the mortgage application form, of the MRV and the equity in the UK property/properties.

You will be required to provide confirmation in the Society’s Mortgage Intermediary Declaration of the UK property/properties, sale of which will be the capital repayment strategy, and the current unencumbered equity in the property/properties.

Posted in: Guide to Terms & Underwriting