What is your policy regarding Interest Only repayment strategies on residential applications?

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  1. Do you accept interest only mortgage applications?
  2. What is your policy regarding Interest Only repayment strategies on residential applications?

1. Do you accept interest only mortgage applications?

The Society’s maximum LTV for an interest only (or part interest only) loan is 75%.  The Society will only consider interest only (or part interest only) loans which have a credible repayment strategy in place.

2. What is your policy regarding Interest Only repayment strategies on residential applications?

The customer must have a credible repayment strategy in place to cover the balance of the loan at the end of the mortgage term. The repayment strategy must be in the name of the customer(s) and be from one of the following:

  • Endowment Plan
  • Stocks & Shares ISA Mortgage
  • Personal Pension Plan
  • Sale of second home (for loans less than 10 years equity at inception should be 100%. For loans greater than 10 years equity at inception should be 75%.)
  • Self build Application – sale of existing property and conversion to repayment

For further information please refer to our Lending Criteria.

You will need to provide us with documented evidence of the repayment strategies. Periodically, we will ask your client to provide us with information on the performance of the repayment plan.

The Society is unable to offer any advice on the suitability of any protection or investment products.


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