Product changes effective from Thursday 13th May 2010
13 May 2010
Changes to our mainstream acquisition range
On 13th May 2010, we are making the following changes:
- New 3 year trackers 60-75% LTV for homemovers and remortgage
- New 3 year fixed 85% LTV for homemovers and remortgage
- Selected 3 and 5 year fixed products reduced by 20 bps
- Selected 2 year trackers increased by 15 bps
- Maximum loan amount on selected products reduced to £500,000 from £1m.
Changes to interest only lending
We have recently undertaken a strategic review of interest only to ensure our products and procedures reflect the additional risks and responsibilities associated with this type of lending. Our recent interest only pricing changes were the first change made as a result of this. Further updates will be introduced over the coming months in addition to those below, which will be effective immediately.
Lending above £500,000
All lending over £500,000 will only be available on a repayment basis.
Interest only repayment vehicles
As part of the review, we have revised our list of acceptable repayment vehicles for mainstream interest only lending. It is important that repayment vehicles can provide certainty of their future value. On this basis, the following repayment vehicles are no longer acceptable:
- Sale of main residence
- Sales of other assets / business
- Inheritance
The ‘Other’ category should only be selected if an acceptable repayment vehicle is stated.
Click here for full product details
"Customers with smaller loans will typically pay less over the product life if they select products with smaller fees, despite the higher interest rates payable."