NatWest Intermediary Solutions has confirmed it will re-enter the interest-only market.
To qualify, borrowers must earn at least £100,000, excluding discretionary bonuses and have an “acceptable” repayment strategy. The maximum LTV is 75 per cent.
Borrowers cannot take out an interest-only loan if they plan to repay it within three years, if they want to consolidate debt, if they are applying through Help to Buy or if they live outside of the UK or do not have the right to live here.
The new criteria will apply from 21 September.
NIS head of intermediary mortgages Graham Felstead says: “We are delighted to be reintroducing residential interest-only mortgages for brokers and their customers. Having undertaken a thorough review of the market, we believe we can help many customers, who meet specific conditions, with their home ownership needs with interest-only mortgages. Customers who take this option will need to have approved repayment strategies in place and agree to engage with us during the loan period so that we can support them to stay on track to repay the loan.
“The mortgage market is currently a very dynamic one which is set to continue on its growth path. We have enjoyed great support from the broker market this year and look forward to continuing to help more and more customers with their borrowing needs for the rest of 2015 and beyond.”