In today’s market it’s great to see that 90% of mortgages are written through intermediaries. This demonstrates that customers really recognise the value of specific advice based on their own circumstances.
Pepper Money also believes that every customer and their own set of circumstances are unique, and as part of such, we are increasingly seeing an uplift in interest-only mortgages.
There are multiple reasons why Interest Only may be right for your customers.
Your customer may be intending to downsize property in the future whilst being self-employed and looking to minimise current contractual payments… or they may be already drawing down their pension and looking to extend their current mortgage term?
We have found that our customer’s income, when applying for an interest only mortgage, is typically higher than average, with 46% of customers earning £50k p/a- £99k p/a.
Interest only remains a smaller proportion of our consumer base as you would expect, but we have seen a 37% increase in completed cases from January to October 2023 vs 2024.
If one of your customers could benefit from Interest Only or they just do not quite fit the High Street, please do not hesitate to contact us
Our key criteria uses a common sense approach looking to assist a variety of customer types
- Maximum LTV 60%
- £18,000 minimum income level (per application)
- Downsize of Existing Residential Home accepted as repayment vehicle with no statutory minimum equity requirement
- Available up to age 75 with earned income and 80 with non-earned income (e.g pension)
- Affordability calculated on an Interest Only basis rather than Capital & Interest.