Enable independent Financial Advisors are always available to try and help you with your mortgage. Unfortunately Santander has further tightened its interest-only criteria and will no longer accept pensions, the sale of a second property, bonuses or cash savings as repayment vehicles. This new move will be effective from March 28, and it comes a month after Santander cut its maximum loan-to-value for interest-only lending from 75 per cent to 50 per cent.
So from the end of March, Santander will only accept the sale of the main residence or investments including endowments, stocks and shares Isas, investment bonds or unit trusts as repayment vehicles. However, the lender will not consider future growth projections for these investment vehicles and they must be at least equal to the value of the loan. Santander will also apply a buffer of £100k between the current property value and the total loan required.
The news follows NatWest Intermediaries Solutions’ decision to suspend its interest-only lending temporarily. Recently, both the Nationwide and Coventry Building Societies decided to cut their maximum LTV for interest-only lending from 75 per cent to 50 per cent.
It was in February, Santander cut it’s maximum LTV on interest-only to 50 per cent from in February.
But a Santander spokeswoman said: “We constantly review our lending policy to ensure that we are lending responsibly. We believe these changes are prudent in today’s challenging economic environment and follow recent competitor changes in this area.”