Barclays has improved its criteria for interest-only borrowers who are using the sale of their property as a repayment vehicle.
Mortgage customers who meet the minimum income criteria can now borrow up to 75% LTV, with a maximum of 50% LTV on an interest-only basis.
This is subject to minimum income criteria. Sole applicants must have a minimum gross annual income of least £75,000.
For joint applications, one applicant must have a gross income of at least £75,000 or a joint gross income of at least £100,000.
Barclays has also changed its sale of property criteria for residential lending.
Previously, where sale of property was used as the repayment vehicle, a maximum 50% LTV applied.
Mortgage customers will now be able to borrow up to 75% LTV with a maximum of 50% LTV on an interest-only basis.
Customers are required to have £300,000 of equity in the property, on top of the interest-only element of the lending.
So on a £600,000 property, a customer who wishes to use sale of property as a repayment vehicle can now borrow a total of £450,000.
This is split between £300,000, or 50% LTV, on interest only and £150,000 on capital and interest, or 25% LTV.
Previously, the maximum available on interest only where sale of property was being used would have been £300,000.
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