Woolwich has announced that all mortgages taken out above 75% LTV will now have to be on a capital repayment basis only, as part of a raft of changes to its interest-only deals.
From 25 October, Woolwich will no longer allow borrowers the ability to have part repayment and part interest-only deals above 75% LTV. It will also carry out random checks to make sure that valid repayment vehicles as cited on the application are in place. In addition, Woolwich will now calculate affordability for interest-only deals over a term of 25 years or until the main income earner reaches 70 or retirement age, whichever comes first. The repayment vehicles that Woolwich will now accept include existing endowment policies, existing stocks or share ISAs, existing unit trusts, an...
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