The lender has removed its £150,000 minimum equity requirement for borrowers who intend to repay the mortgage debt by selling the property.
The lender said the change will open up interest-only mortgages to a wider range of borrowers.
Previously, interest-only mortgages were capped at 65% LTV lending.
The lender said the move may also help those with less-than-perfect credit profiles who need breathing space, through lower monthly payments, to rebuild their scores over time.
Adrian Moloney (pictured), group lending distribution director at parent company OSB Group, said: “We’re really proud to introduce these affordability enhancements, following direct feedback from brokers and the recent launch of our 40-year term.
The big BTL planner: Key dates landlords need to know
Sponsored by BM Solutions
“Today’s changes ensure more residential customers can benefit from appropriate affordability support where interest-only is suitable.”
