The confirmation of tougher scrutiny on interest only mortgages was announced by the FSA on the 25/10/2012. The lenders have already changed their lending criteria to reflect the FSA ongoing concerns. Interest only mortgages are still available but must have a credible repayment strategy. This can include downsizing to cheaper property, sale of holiday home or buy to let property, encashment of investments or tax free cash lump sum from pension.
Each lender has its own criteria of what is acceptable. For example Woolwich will take downsizing to a cheaper property on the condition the mortgage cannot be more than 66% of the value of the property and with a minimum equity of £150,000. Nationwide do not offer any options on interest only and insist that all new lending be arranged on a capital repayment basis.
Please contact if you have been affected by the recent changes in interest only criteria or require advice on how to put in a repayment strategy for your existing interest only mortgage.
Why use Neil Soundy Financial Services for your mortgage advice.
We will give you expert impartial advice on the mortgage market.
View the video on our homepage that explains how we can offer at least twice the choice of mortgages compared to a standard mortgage broker.
Neil Soundy Financial Services Ltd is an appointed representative of HL Partnership Ltd which is authorised and regulated by the Financial Services Authority.
The Financial Conduct Authority does not regulate some forms of buy-to-lets.
We do not give or imply legal or taxation advice. We recommend you contact a solicitor or accountant for advice in these areas.
Think carefully before securing other debts against your home/property. Your home/property may be repossessed if you do not keep up repayments on your mortgage.
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