Endowments | Copy of latest projection statement dated within last 12 months | We will compare the projected values on the statement to the amount of Interest Only lending required. If more than one value is given we will take the middle value. | Endowment companies will present three growth rates to a client with the middle one being the most likely projected outcome.
We allow up to 100% of projected amount using the middle % or the lower projection if there are 2 growth rates. |
Sale of Second Home/Buy to Let(UK) | Property details, confirmation of ownership, amount of any mortgage debt
(Property valuation and land registry search carried out by us if needed). | We will verify the ownership of the second property and its value. We will compare the equity available in the property with the amount of Interest Only lending required.
(See Second Home/Buy to Let Details) | We will check the ownership of the other residential property and assess its value. We will compare the equity available in the property with the amount of Interest Only lending required. Current equity within the property must be over £50,000*. We will use 80% of the current equity value of the property to support Interest Only lending. Please note that there is a minimum greater than £50,000 equity requirement for each individual property being used to support Interest Only lending*. |
Sale of second home/Buy to Let not yet purchased (UK) | Property details, Acting Solicitor to confirm intended ownership of the second property, details of any loans to be secured against this property (Property valuation and land registry search carried out by us if needed). | We will verify the intended ownership of the second property and its value. We will consider any loans to be secured against the property and the equity that will be available in the property with the amount of Interest Only lending required.
See Second Home/Buy to Let Details) | We will confirm the intended ownership of the second property prior to offer on the new mortgage / further advance. Current equity within the property must be over £50,000*. We will use 80% of the current equity value of the property to support Interest Only lending. Please note that there is a minimum greater than £50,000 equity requirement for each individual property being used to support Interest Only lending*. |
Stocks & shares (Only UK - based investments quoted within the FTSE index held in sterling will be permitted.) | Share valuation/and or number of shares on date of assessment.
Share statement or sharecertificate dated within the last 12 months. | We will compare the value of the shares with the amount of Interest Only lending required, taking into account the remaining term of the mortgage and future market volatility. | See - Stock & share ISA. |
Stocks & Shares ISA (Only UK - based investments quoted within the FTSE index held in sterling will be permitted.) | Copy of latest investment statement dated within last 12 months | We will compare the value of the ISA with the amount of Interest Only lending required, taking into account the remaining term of the mortgage and future market volatility. | We will compare the value of the ISA/Investment Bond/UnitTrust/OEIC with the amount of interest only lending required, taking into account the remaining term of the mortgage and future market volatility.
We will only take 80% of the current value of the investment into account and the current value must be greater than £50,000*. |
Unit trust or OEIC | Copy of latest investment statement dated within last 12 months | The current value will be compared to the amount of Interest Only lending requested, taking into account the remaining term of the mortgage and future market volatility. | We will compare the value of the ISA/Investment Bond/UnitTrust/OEIC with the amount of interest only lending required, taking into account the remaining term of the mortgage and future market volatility.
We will only take 80% of the current value of the investment into account and the current value must be greater than £50,000*. |
Pensions | Copy of latest statement dated within last 12 months | Copy of latest projection statement dated within last 12 months | For the purposes of backing an interest only mortgage, a maximum of 25% of the current fund value with the current value to be greater than £1 million*. Where clients are on a final salary pension scheme 100% of the current lump sum can be used, onlyif it is greater than £250,000*. Pensions can be combined to reach the £250,000 and there is no need for confirmation of the full fund value. |
Investment bonds | Copy of investment statement dated within the last 12 months | We will compare the value of the bonds with the amount of Interest Only lending required, taking into account the remaining term of the mortgage and future market volatility. | We will compare the value of the Investment Bond with the amount of interest only lending required, taking into account the remaining term of the mortgage and future market volatility.
We will only take 80% of the current value of the investment into account and the current value must be greater than £50,000*. |