The maximum loan-to-value (LTV) is 60% for purely interest-only, or up to 80% LTV for a part interest-only and part repayment loan.
There is no minimum income required, and the only acceptable repayment vehicle will be the sale of another property or properties in England or Wales in the same name as the applicant(s). There must be sufficient equity in that property to repay the new loan.
Hinckley’s head of intermediary sales Carolyn Thornley-Yates said: “Our manual underwriting enables us to assess each application for any of our mortgages on an individual approach, and that will also be true of interest-only applicants.
“Interest-only will be attractive for those buyers who meet our requirements of a repayment strategy. We are pleased we can offer them our great choice of mortgage products at very competitive rates.”
Hinckley deals which can apply the interest-only include a two-year fix at 2.09%, a five-year fix at 2.59%, a two-year discount at 1.65% and a lifetime discount at 1.95%.
The application and completion fees are standard across repayment and interest only.