Yorkshire Building Society has launched interest-only repayment options on its mortgage range.
The option will be available to new and existing borrowers up to 75% LTV and is available on its offset mortgages also in the hopes to provide additional flexibility.
Charles Mungroo, senior mortgage manager at Yorkshire Building Society, said: “Demand for interest only mortgages is increasing and for borrowers who have made an informed decision that this repayment method best meets their needs, and who have a clear strategy to repay the loan, we understand the additional flexibility interest only can provide.
“We’re confident the introduction of interest-only options will be welcomed by a number of customers in this market and are pleased to offer borrowers more choice.”
To meet the newly introduced lending criteria, Yorkshire Building Society requires borrowers to demonstrate that they have acceptable repayment strategy in place at the the end of the mortgage term.
The lender will allow the sale of the mortgaged property at the term end to be used as a repayment strategy, where the amount borrowed against this strategy does not exceed 50% LTV and where there is a minimum of £200,000 equity within the property.
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