The Society accepts repayments of loans either on capital and interest (a repayment mortgage) or by payment of interest only or a combination of both.

 LTV Limits

•    Repayment: 90%

•    Interest Only: 75%

•    Part Interest Only / Part Repayment: 75%  (This can be extended to 85% for large loans and ex-pat products) 

For the following types of borrower the repayment method is restricted to repayment (capital & interest) regardless of loan to value:-

•    Shared Ownership

All loans arranged where the capital element is not included in the monthly payment (including those that are part capital and interest repayment, part interest only), must have a suitable strategy in place to repay the capital at the end of the term.

We must see evidence of the repayment strategy for Interest Only mortgages so documents relating to the repayment strategy must be received before a mortgage offer can be considered. The Society’s Interest Only Declaration Form must also be completed prior to offer to enable the Society to assess the repayment strategy.

This requirement does not apply to Buy to Let applications (where ‘sale of property’ is considered to be the default method of repayment).

Please note that Interest Only applications are subject to product availability and restrictions may apply.

The table linked below shows the repayment strategies that we accept and the evidence required in each case. It also shows the methods we use to assess whether a repayment strategy meets our lending criteria.

Repayment Strategies

Periodically, we will ask applicants to confirm in writing that their repayment strategy is on track to repay the outstanding balance. If they are unable to satisfy us that their repayment strategy (ies) remain on track to repay the outstanding balance on their mortgage, we may ask them to transfer some or all of their mortgage onto a capital and interest repayment basis.

•    Repayment strategies CANNOT be accepted if they include the name of anyone NOT named on the mortgage

•    Applicant(s) can use more than one repayment strategy to cover their total interest only amount

•    The on-going cost of any repayment strategy must be included in our affordability calculations

The following are NOT acceptable repayment strategies:

•    Inheritance (unless the person has already died and the exact entitlement is known and can be adequately evidenced)

•    Speculative and uncertain strategies (such as setting up a new business which does not exist at the time of application; gambling)

•    Reliance on future growth in property values (either for the main security or for other background properties)

•    Utilisation of an investment plan where there does not already exist an established track- record of investment

•    Anticipated gifts of either monies or assets 

•    Future lump sum repayments.