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Scottish Widows expands interest-only criteria

  • 23/06/2016
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Scottish Widows expands interest-only criteria
Scottish Widows Bank has widened its criteria on interest-only mortgages to allow borrowers to use the sale of the main property as a repayment vehicle.

The repayment strategy is available for borrowers who have income over £100,000, a loan-to-value which does not exceed 50% and at least £200,000 equity in the property.

Martin Fleming (pictured), managing director, Scottish Widows Bank, said: “We regularly review and adapt our products and policies to ensure that they meet the evolving needs of our customers through striving to improve flexibility, add value and provide excellent service.

“We offer innovative offset mortgage products designed to reflect the needs of our target customers, including professionals and other individuals on higher incomes.”

The bank has confirmed no higher product fees will apply to consumers using this option and all products, available in the 50% LTV bracket, can be accessed.

Scottish Widows joins Virgin Money as a lender showing a renewed appetite for interest-only lending. In March, Virgin Money dropped its minimum income requirement from £100,000 to £50,000, which can include income such as bonuses. It restricted income multiples for interest only to 3.5 times, in order to prevent borrowers from overstretching their finances.

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