Interest only remortgages
Available to your remortgage clients only.
We’ve launched the option to choose Interest Only (IO) or part and part repayment basis across our remortgage product range.
Please see our specific interest only criteria below to ensure your client is eligible before submitting an application on NFI Online.
For our interest only remortgages and part and part lending, the following eligibility criteria will apply:
- maximum 60% loan to value (LTV)
- minimum income criteria of £75,000 for sole applicants, £100,000 for joint applicants*. This is based on basic income only. Secondary income, bonus, overtime or commission can’t be used. Self employed income accepted as per our standard criteria.
- minimum equity varies by region**. This will be based on the region selected on the ‘Loan Requirements’ page on NFI Online. To check which region the property is situated in you can use the House Price calculator.
- £300,000 for Greater London/Outer Metropolitan
- £250,000 for Outer South East
- £200,000 for all other UK regions
- maximum term of 25 years (or retirement if sooner)
- sale of main residence as repayment strategy
- can’t be used in conjunction with any other scheme (e.g. Shared Ownership, Right to Buy, Help to Buy)
- minimum lease term of 70 years at application
- maximum loan amount of £2 million.
Cases will be assessed on a capital and interest basis. Your client won’t be eligible if:
- they declare that they have a secured loan, but they’re not settling it
- a secured loan has been found at the Bureau but isn’t declared
- a secured loan has been declared but we find a higher monthly payment at the Bureau
- your client is retired, or the term will go into retirement
To apply for an interest only remortgage, your client will need to sign our ‘Sale of residence customer declaration form’ and attach it to the case in NFI Online before any mortgage offer can be issued. The declaration confirms that your client understands the requirement to sell their property to repay the outstanding balance at term expiry.
* The minimum income criteria will determine if your clients are eligible for our interest only product and the assessment is made using their basic source of income.
** Minimum equity will be applied automatically at the Decision in Principle (DiP) stage. After the valuation, if there’s any impact on the minimum equity requirement it could mean that your client is no longer eligible for this proposition.