On 21 February we’re changing the £150,000 minimum equity requirement where a mortgage includes an interest only sale of the property loan part.  Currently the £150,000 buffer is based on the equity at application.

  • For part interest only sale of property with part capital and interest, the £150,000 will be calculated on the equity at the end of the mortgage term.
  • For pure interest only with sale of property the £150,000 will still be based on the deposit/equity at application.

 

What are the pipeline rules for this change?

All full mortgage applications (FMAs) already submitted through Introducer Internet by close of business on Saturday 20 February will not be affected and will continue to be progressed using our existing interest only policy.

Any cases submitted as an FMA from Sunday 21 February, or where a material change is made to an FMA submitted before close of business on Saturday 20 February, will be assessed using our new interest only policy.

 

Further help and support

If you have any questions please speak to your dedicated contact.