Residential mortgages can now be split between capital and interest and interest-only repayment methods within a single mortgage.
This is tailored to borrowers who will benefit from lower initial monthly payments, while still reducing their mortgage balance.
The interest-only proposition will be available up to a maximum of 75% loan to value (LTV), with overall lending available up to 97% LTV. The enhancement will be available across Vida’s entire existing residential product range – excluding Right to Buy.
Leasehold properties on interest-only or part and part mortgages must have a minimum of 70 years remaining at the end of the mortgage term.
Product fees, where added, will be allocated to the capital and interest element.
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All existing Vida interest-only repayment strategies remain acceptable.
Dave Angel, managing director for mortgage product management at Vida Homeloans, said: “At Vida, we’re committed to giving brokers more ways to meet the needs of customers whose circumstances don’t always fit a standard approach. The introduction of part and part provides valuable flexibility, helping borrowers balance affordability today with clear plans for the future.
“Whether it’s younger customers looking to keep initial monthly payments manageable, clients approaching, or already in, retirement, or borrowers with credible repayment strategies and future assets, part and part gives brokers another practical solution to support a wider range of specialist residential cases.”
