Coventry Building Society is returning to the interest-only market with the launch of a range of fixed and offset products for high value properties.
The products are capped at 50 per cent loan to value (LTV) and borrowers require a minimum £300,000 equity left in the property after the mortgage amount required has been accounted for.
There is no minimum income requirement, but borrowers must demonstrate they have sufficient income to support an equivalent repayment mortgage and meet all the repayment affordability checks.
Deals are available on two- and five-year fixes with early repayment charges applying.
For interest-only there is a two-year fix with £999 fee at 1.47 per cent and a fee-free five-year deal at 1.95 per cent.
Meanwhile interest-only offset versions are available at 2.29 per cent for a two-year fix with zero fee, with a five-year fix and £999 fee at 2.15 per cent.
Speaking at the Mortgage Vision event, Coventry Building Society head of intermediary relationships Jonathan Stinton confirmed the lender would allow a maximum age of 75 on the products.
“A wide range of repayment plans are available and borrowers can use a mixture of repayment vehicles,” he added.
In a statement Stinton continued: “Now, more than ever before, borrowers are looking for control over their finances so we’re pleased to be re-entering the interest-only market.
“Interest-only products are ideal for borrowers who would like to reduce their monthly mortgage payments or free up cash that they can use in other ways.
“With our products, there’s also the option of using the sale of the property to repay the loan which makes downsizing a realistic option for repayment.”
Owain Thomas is features and contributing editor of Mortgage Solutions and editor of Specialist Lending Solutions.
He also has experience in the protection, pensions, workplace benefits and HR areas.
Owain has won two Headline Money Awards and the Protection Review’s Journalist of the Year award.