Santander is reducing the maximum loan to value on its interest-only residential deals to 50%, in a move it hopes will encourage some borrowers to select a capital repayment mortgage.
The previous maximum LTV was 75%. A spokesperson for Abbey for Intermediaries said: “Following a review of our interest-only criteria, we have taken the decision to reduce the maximum LTV on our residential interest-only mortgages. “For new applications with any amount taken on an interest-only basis, the maximum LTV for the overall loan will now be 50% LTV. "This will encourage borrowers with less equity in their properties to choose a capital repayment mortgage, and ensure the capital is being paid off in full over the term of the mortgage. “We believe this decision is a prude...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
