For the use of mortgage intermediaries & other professionals only

Interest only changes

On Wednesday 24 May, we’re reducing the qualifying income required for Sale of Mortgaged Property (SOMP), bonus and cash repayment plans. We are also making changes to some SOMP criteria, which will mean this option is now available to more customers.

For SOMP (including where 2nd home), bonus and cash repayment plans

Minimum income reduced to:

  • £75,000 for a sole applicant (or one applicant on joint application)
  • £100,000 for combined income on a joint application.

Sale of Mortgaged Property (SOMP)

  • The maximum loan to value (LTV) available on Interest Only with SOMP is being increased from 50% to 75%
  • For part Interest Only and part repayment lending the minimum equity will now be calculated at the end of the mortgage term, not at point of application.

New limits are now:

  • 0% to 50% - minimum equity at the end of mortgage £300,000
  • >50% - 60% - minimum equity at the end of mortgage £500,000
  • >60% - 75% - minimum equity at the end of mortgage £750,000.


For a property value of £500,000 a loan of £375,000 (75% LTV) would now be available with up to £200,000 on SOMP (to leave £300,000 minimum equity at end of term).

  • You will receive a new message where SOMP has been selected but the minimum equity requirement has not been met.
  • All other SOMP criteria remains unchanged.

There are no other changes to our interest only repayment plan criteria. Please see our interest only criteria section for more information on acceptable repayment plans, which will be updated from Wednesday 24 May.

The changes will apply to applications started from Wednesday 24 May.