The hot topic this week is Interest Only. The Family Building Society offer a range of Standard Interest Only Products as well as RIO mortgages. If you have any case enquiries or questions, do not hesitate to get in touch.
If you would like to know more about this, or any of our other policy areas they are happy to arrange a call or zoom meeting to go through these. Let them know if this would be useful and they will get this in the diary at a time convenient to you.
Standard Interest Only Criteria Points
- Max LTV of 75% 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).
- Stocks & 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.