Will Interest Only be pulled from existing customers?

Mr_Incredible

betmunch wrote: »

Nationwide don't offer interest only mortgages and haven't done for a long time.

Yes they do I have one now

They also offer a fresh one as do Santander

Please read my post. I'm simply asking if anyone knows of any other banks that do.

If you know of any please comment

Mr_Incredible

amnblog wrote: »

LTV is not the only consideration for new borrowers seeking interest only.

How is this post of any help given my question

Mr_Incredible

lonestarfan wrote: »

What do you mean "when it comes round for renewal"? Do you mean you have a mortgage product with Nationwide that has an end date to it?
If so then you will have to see what products they will offer you to retain you or remortgage elsewhere. Not sure many places do IO but you can view it in their lending criteria. Santander was 50% for my family member who is an existing borrower wanting a new product and any further borrowing above 50% had to be on a repayment basis. They gave a better rate when brought down to 50% LTV by paying a small capital repayment to it.

Please read my later post

I know that Santander and nationwide still do I

If you know of any others please comment

Contemptuous

Tsb.

......

betmunch

Mr_Incredible wrote: »

Yes they do I have one now

They also offer a fresh one as do Santander

Please read my post. I'm simply asking if anyone knows of any other banks that do.

If you know of any please comment

Yes I saw you had one.

Nationwide havent offered IO since Oct 2012.

As an experienced broker I do know which lender will or wont offer IO along with their conditions to actually get one.

In anticipation of your next questIon. No I wont name the lenders without doing a full fact find on a client to determine if they are suitable.

I wish you luck in your search

lucie_1985

My brother has recently obtained an interest only mortgage with HSBC premier at 0.99%. The criteria for HSBC premier as I understand it is that one of the parties to the mortgage must earn more than £100k/annum solely or have £50k in investments with HSBC. They're around....just not easy to get, plus the overpayment limit is something like £50/month

jimjames

Mr_Incredible wrote: »

OK thanks, I'm under 50% LTV, make over payments as and when and we jointly earn over £100k.

Sounds like I should open an ISA before the fixed period runs out then

How are you intending paying off the mortgage if you have no ISA or other plan in place? Is it not worth getting repayment so you have that security if you don't have savings to cover it?

Mr_Incredible

betmunch wrote: »

Yes I saw you had one.

Nationwide havent offered IO since Oct 2012.

As an experienced broker I do know which lender will or wont offer IO along with their conditions to actually get one.

In anticipation of your next questIon. No I wont name the lenders without doing a full fact find on a client to determine if they are suitable.

I wish you luck in your search

I've already spoken to nationwide and they have said they will offer me one. I wish you luck with your career

betmunch

Mr_Incredible wrote: »

I've already spoken to nationwide and they have said they will offer me one. I wish you luck with your career

Do you mean you have taken a new product on your existing mortgage?

Or if you are moving, you are porting the terms of your existing mortgage?

kingstreet

Mr_Incredible wrote: »

I've already spoken to nationwide and they have said they will offer me one. I wish you luck with your career

Betmunch is correct.

You also appear to be requesting a customer retention product, not moving home so the issue is moot. The repayment method is not questioned in such circumstances; nor is income/affordability nor status.

http://www.nationwide-intermediary.co.uk/news/article?id=2012-10-04

News Article
Criteria Update: Interest Only

Date 04.10.2012
With effect from Thursday 11 October, we will be making the following changes to our lending criteria:

We will no longer offer Interest Only mortgages for any new or additional borrowing

Existing customers may retain their Interest Only mortgage, but cannot increase their borrowing on that basis.

You appear to be able to take advantage of the existing borrower concession if you were moving house, but you won't get any increased borrowing on an interest-only basis.

Any new borrower not currently with Nationwide who couldn't take advantage could be misled by your assertion.

You've also mentioned Santander which does offer interest-only to both new and existing borrowers. However, there is a detailed requirement for a repayment plan that has to be in place repay the mortgage. Voluntary overpayments "as and when" wouldn't be accepted.