Interest only mortgages

• This can cover up to a maximum of 60% of the value of the property.
• You can borrow up to 85% loan to value (LTV) on a Capital Repayment basis. But only 75% can be on an Interest Only basis by using an additional repayment strategy.
• For Interest Only lending the property must have a minimum equity of £250,000 at the time of application for non-London properties and £300,000 for properties located in London. For Part Interest Only & Part Repayment lending the minimum equity requirements are calculated at the end of the mortgage term.

• You can use a maximum of 75% of the equity in the property as your repayment strategy.
• The property must be in located in the UK.
• The property must be in your name only with no other parties named.
• You'll need to show a copy of the latest mortgage statement if it is mortgaged by another lender.

• A maximum of 60% of your tax-free lump sum, or 15% of your total pension pot, can be used towards your strategy.

• A maximum of 90% of the tax-free lump sum can be used towards your strategy.
• Your mortgage term must take you beyond the age of 55. And your declared retirement age must be at or before the end of the mortgage.

• The current value of the savings must cover 100% of the interest only borrowing. The total can include eligible investments that we refer to below.
• The savings must have been held for a minimum of 12 months.
• The savings must be in pounds sterling.

You'll need to show your latest savings statement.

• The projected mid-point maturity value must cover 100% of the interest only borrowing.
• The endowment must have been in place for at least 12 months.
• The end of the endowment term must not be later than the end of the mortgage term.
• It must be a UK Policy provided by a regulated firm.

You'll need to show your latest endowment policy statement, dated in the last 12 months.

• The current value of the investments must cover 100% of the interest only element of the mortgage. The total can include savings that meet our terms and conditions and that are referred to above.
• The investments must be in pounds sterling.
• The investment must have been in place for a minimum of 12 months.

For stocks and shares ISAs, Unit Trusts/OEIC, or for Investment Bonds, you'll need to show your latest statement. For stocks and shares ISAs you may need to show copies of share certificates or statements containing evidence of shareholdings and their valuation.