To qualify for the increased LTV, which was previously restricted to 50%, applicants must have £300,000 of equity in the property.
Where downsizing is the strategy, the applicant must confirm in writing they intend to sell the property and a valuation must support the required level of equity.
If the applicant intends to use a cash lump sum which is not an endowment, pension or a share portfolio, a copy of the applicant’s last statement evidencing the lump sum must be supplied.
And evidence of regular and on-going contributions paid over the last 12 months must be submitted with the application.
Interest-only mortgages are only available through the Clydesdale broker distribution channel and the private banking arm which also includes the Yorkshire bank brand.
A spokesman for Clydesdale said: “We only offer interest-only mortgages through brokers and our private banking arms. We have amended our policy on these mortgages to reflect the demand in those specialist markets.
“The changes support borrowers who have suitable repayment strategies and strong levels of equity.”Interest-only
The Mortgage Market Review rules in October 2012 confirmed interest-only mortgages could only be offered where a credible repayment strategy was in place which prompted a wave of mortgage lenders to exit interest-only entirely.
Nationwide stopped accepting new interest-only applications in the same month followed by other major lenders including NatWest, RBS, Coventry Building Society and Newcastle Building Society.
In April last year Martin Wheatley,chief executive of the Financial Conduct Authority, criticised the mass withdrawal stating lenders had failed to fully assess ways of offering interest-only before withdrawing from the market, fearful of retrospective regulatory action.
