If you wish to arrange property finance on an interest-only basis you will probably find that the best rates are now available from private banks.
High-street lenders continued to tighten the criteria on their interest-only mortgages during June. The Lloyds Banking Group, which includes the Halifax, BM Solutions and Cheltenham & Gloucester brands, will no longer offer the option of interest-only repayments if customers borrow over £500,000 or accept the future sale of a house or business as a repayment vehicle on any interest-only loan.
“It is getting harder and harder on the high street to place interest-only deals above 75% loan-to-value,” said Nigel Bedford of Largemortgageloans.com. “Even below this, lenders are being more restrictive on what they will accept as a repayment vehicle and the documentation required to confirm it.”
Interest-only mortgages have grown in popularity among high net worth borrowers, with most loans over £1m being financed in this way.
Private banks will still want to agree a reasonable repayment method, but are less likely to ask for any particular proof because of their better understanding of how high income clients operate their finances.
For access to the best rates on interest-only high value mortgages, contact us now on 020 7519 4900 or request an online quote.
This entry was posted
on Tuesday, July 6th, 2010 at 11:43 am and is filed under Commentary.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
United Kingdom
Brazil
Canada
European Union
Guernsey
Ireland
Jersey
United Kingdom
United States
News & Views:
Private access to the best rates
If you wish to arrange property finance on an interest-only basis you will probably find that the best rates are now available from private banks.
High-street lenders continued to tighten the criteria on their interest-only mortgages during June. The Lloyds Banking Group, which includes the Halifax, BM Solutions and Cheltenham & Gloucester brands, will no longer offer the option of interest-only repayments if customers borrow over £500,000 or accept the future sale of a house or business as a repayment vehicle on any interest-only loan.
“It is getting harder and harder on the high street to place interest-only deals above 75% loan-to-value,” said Nigel Bedford of Largemortgageloans.com. “Even below this, lenders are being more restrictive on what they will accept as a repayment vehicle and the documentation required to confirm it.”
Interest-only mortgages have grown in popularity among high net worth borrowers, with most loans over £1m being financed in this way.
Private banks will still want to agree a reasonable repayment method, but are less likely to ask for any particular proof because of their better understanding of how high income clients operate their finances.
This entry was posted on Tuesday, July 6th, 2010 at 11:43 am and is filed under Commentary. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.