Upon application a fee of up to £495 will be payable (typically £195)
At present there are sometimes complications for applicants seeking interest only mortgages. These issues have arisen due to high prices for property, pay freezes and the lender’s attitude towards this kind of mortgage.
However, stepping onto this ladder is made less easy by the lenders, as they implement and maintain strict guidelines when dealing with interest only mortgages. Some of the mortgage lenders criteria may include:
- Interest only mortgages unavailable if the property is for residential purposes
- Interest only mortgages for a limited loan to value, for example up to 65%
- Only available if a sufficient repayment scheme is present, for example endowment or pension plan
Please note: Buy to let mortgages remain unaffected by the changes lenders have made with regards to interest only mortgages. The aforementioned changes are in association with the residential market only.