Mortgage-free property (unencumbered properties)
The maximum we will currently consider lending on mortgage free properties is 90% with the following exceptions:
Maximum of 75% for the following purposes:
- Purchase of stocks & shares
- Currency speculation.
We do not lend for the following purposes (at any LTV):
- Injection into a business.
- Loans on mortgage-free properties are treated as purchases not remortgages and so must be keyed as 'Home Movers'. Ensure you select Home Mover as the client type. The applicant is only eligible for the Home Mover range of products and not the remortgage products or incentives. Free legal fees are not available for these applications, a valuation fee is charged and there is no right to appeal the property valuation.
- The property must have been registered in the applicant's name (or at least one of the applicants' names) for a minimum of 6 months unless the property has been inherited and the applicant is a beneficiary.
- Applications where the applicant is not a beneficiary of the inherited property, and the beneficiary has owned the property for less than 6 months, are not acceptable.