Criteria

Interest Only

We offer mortgages on a full or partial interest only basis.

If the total borrowing is over 75% LTV the full balance must be on a repayment basis.

All interest only borrowing must be supported with an acceptable repayment plan, which we’ll need to see evidence of before a mortgage offer can be produced.

 

ACCEPTABLE REPAYMENT PLANS

Below are the repayment plans we currently accept. Click on each one to see associated criteria, evidence required, and the assessment method we’ll use.

This information is a guide. We’ll only issue a mortgage offer once we’ve confirmed the evidence supplied meets our criteria for the amount required.

 

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Sale of property to be mortgaged, if it's a main residence Sale of property to be mortgaged, if it's a second home Bonus Cash Pension Endowment UK based Stocks & Shares ISAs, Unit Trusts, OEICs or Investment Bonds UK based stocks & shares Sale of second home/Buy to Let (UK) Sale of another residential property not yet purchased
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Further Advances

If your client has any of their existing debt on interest only they will need to provide evidence that they have a repayment plan in place to repay the capital at the end of the term.

If the Further Advance is to be conducted on an interest only basis, we will also require evidence of the repayment plan that your client intends to use to repay the Further Advance amount at the end of the term. This repayment plan must be from our acceptable list.

If the Further advance is to be conducted on a capital and interest repayment basis and your client has an existing interest only debt, they must still provide evidence that they have a repayment plan in place to repay the interest only capital balance at the end of the term.

Only where the evidence to support the Further Advance, as well as any existing interest only debt, meets our criteria and covers the full amount to be conducted on an interest only basis, can the Further Advance Offer be produced.

Product Transfers and Contract Changes

If your client has any of their existing debt on interest only they’ll need to provide evidence that they have a repayment plan in place to repay the capital at the end of the term.

A Product Transfer can only be completed once the repayment vehicle has been validated.

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Scottish Widows Limited. Registered in England and Wales No. 3196171. Registered office in the United Kingdom at 25 Gresham Street, London EC2V 7HN. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Financial Services Register number 181655.

Scottish Widows Unit Trust Managers Limited. Registered in England and Wales No. 1629925. Registered Office in the United Kingdom at Charlton Place, Andover, Hampshire SP10 1RE. Tel: 0345 300 2244. Authorised and regulated by the Financial Conduct Authority. Financial Services Register number 122129.

HBOS Investment Fund Managers Limited, registered in England number 941082. Registered office in the United Kingdom at Trinity Road, Halifax, West Yorkshire HX1 2RG. Authorised and regulated by the Financial Conduct Authority. Financial Services Register number 119223.

Scottish Widows Bank is a trading name of Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales, no. 2065. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under number 119278.

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