View more on these topics

ING Direct slashes interest-only LTV

ING Direct has cut its maximum loan-to-value ratio on interest-only lending from 75 per cent to 50 per cent.

Borrowers can top up their borrowing to 80 per cent LTV as long as the additional 30 per cent is on a capital repayment basis.

If the sale of the property is the repayment vehicle, ING will insist on a minimum £165,000 equity in the property for all interest-only and part-interest-only mortgages.

It will no longer accept cash Isas as a suitable repayment vehicle but will accept endowments or pension plans where the mid-point projected value exceeds the interest-only part of the loan.

ING will also accept unit trusts, personal equity plans, stocks and shares Isas or professionally managed share portfolios if the current value exceeds the interest-only part of the loan.

ING is the latest in a string of lenders to restrict interest-only criteria. Earlier this month, Principality Building Society restricted its interest-only lending to three products but kept its maximum LTV at 85 per cent.

In March, Leeds Building Society and Skipton Building Society cut their maximum LTV from 75 per cent to 50 per cent and 60 per cent respectively.

In the same month, Nationwide Building Society and Coventry Building Society cut their maximum interest-only LTVs from 75 per cent to 50 per cent and Santander announced it will no longer accept pensions or the sale of a second property and cash savings as repayment vehicles.

In February, Santander cut its maximum LTV from 75 per cent to 50 per cent.

Mortgage Concepts Associates director Mike Richards says: “Lenders are making a kneejerk reaction to the interest-only proposals in the mortgage market review.”


Threadneedle hands over EM bond funds to Stipp

Threadneedle has named Henry Stipp as manager across five emerging market bond funds following the departure of Richard House to Standard Life. Stipp, an emerging market debt manager who has been at Threadneedle since 2001, will take over management of the Theadneedle emerging market bond fund, Threadneedle emerging market local fund and three offshore funds, […]

HBOS corporate head to appeal FSA action

Former Bank of Scotland corporate division head Peter Cummings is to appeal against a seven-figure fine and “warning notice” imposed by the FSA, according to reports. The Daily Telegraph reports last month’s FSA report into BoS failings focused on Cummings’ corporate division, saying it was “guilty of very serious misconduct” which meant the bank “failed […]


12,000 Pritchard clients warned over cash asset shortfall

Around 12,000 clients have been warned it is “highly likely” there will be a shortfall in their share of £24m of Pritchard Stockbrokers’ cash assets which were recently frozen by the FSA. Special administrator Mazars has written to around 6,000 Merchant Capital clients, where Pritchard acted as custodian, and 6,000 Pritchard direct clients, warning of […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm