Specialist lender Precise has upgraded its residential interest only proposition.
The lender has increased interest only availability up to 75% LTV and has removed the minimum equity requirement where the repayment strategy is the sale of the property.
It says this shift is designed to open up interest only lending to a wider range of borrowers.
The refreshed range offers both 2 year and 5 year fixed options, with eligibility primarily driven by LTV and the suitability of the repayment strategy.
Key enhancements
- No minimum equity requirement where repayment is via sale of security (previously £150k minimum equity).
- Interest only LTV increased from 65% to 75%.
By raising LTV limits and removing equity thresholds, Precise says it aims to support customers looking to upsize using the sale of their property as their repayment vehicle.
The widened criteria may also help those with less than perfect credit profiles who are seeking breathing space to rebuild their scores over time.
Accepted repayment routes include:
- sale of the mortgaged property
- savings or investments
- pension lump sums
- sale of an additional property
All repayment plans will continue to be fully assessed for suitability during underwriting.
Adrian Moloney, group lending distribution director at OSB Group, says: “Today’s changes ensure more residential customers can benefit from appropriate affordability support where interest only is suitable.
“Our focus on flexible affordability solutions is more important than ever. We’ll keep listening to our intermediary partners and evolving our proposition to support responsible lending.”
