Family BS have been asked quite a bit over the last few days around these two area’s and thought we would provide a bit more of a break down surrounding them and how they can help you and your clients:
Interest Only Residential Mortgages
We offer a range of Standard Interest Only Products as well as RIO mortgages..
Standard Interest Only Criteria Points
Max LTV of 80%% if the client has a repayment strategy in place. Acceptable strategies include:
- Sale of other assets, e.g. second home, property, land in UK, etc.;
- Pension cash lump sum (personal or occupational);
- tocks & shares ISA (new or existing); Cash Isa, NISA,
- Unit trust (new or existing);
- Investment bond (new or existing);
- Endowment policy (new or existing);
- Stocks and shares.
Max LTV of 70% if the strategy is Sale of mortgaged property:
- No minimum equity, but must be a credible strategy and can be evidenced that the sale will provide sufficient funds to both repay the advance and allow the Borrower to purchase a cheaper property to reside in.
- No Minimum Income Requirement.
- A range of incomes considered Self Employed, Employed, Pensions/SIPPS/Investments/Rental
- Age at application, Min 18, Max: 89
RIO Criteria Points
- Max LTV at application 50% LTV
- Min Age at application 65, Max age at application 89.
- Only Guaranteed Pension Income considered, if the application is joint, it must pass a predecease affordability.
- No additional repayment vehicle needed
- Undefined mortgage term.
BTL Offset
- Term reduction and Payment reduction options available
- Fully off-settable with no interest payable
- Great alternative to bridging, secure the debt on a suitable property, develop/renovate/update a non suitable property and once this is refinanced/sold – re-offset the original debt until the next one!
- More landlords recently are having to pay down some of their existing portfolio from their cash reserves, this potentially means locking away that money, re-finance an unencumbered property, pay down the debts on the others in the portfolio and keep the cash in their reserves, BUT, then offset our mortgage and reduce the interest payable until those reserves are needed in the future. Reducing the interest due whilst also keeping control of the original cash reserves.
If you have any questions/cases you would like to discuss, please do not hesitate to get in touch!