Newcastle Intermediaries is expanding its interest-only offer to its range of residential mortgages, including self-employed options.
Interest-only mortgages will be available at a variety of LTVs to a maximum of 75%. An additional 5% LTV can be secured if part of the loan is arranged on a repayment basis.
Affordability for interest-only loans will be calculated on an interest-only basis and take into consideration the outgoings of the customers’ repayment vehicle.
Steve Carruthers, head of mortgage distribution at Newcastle Intermediaries, said: “Although we already offer interest-only loans across a range of existing mortgages – buy-to-let, self build and large loans, we wanted to introduce the interest-only option to our standard residential mortgage range to give borrowers more flexibility.
“Whilst the interest-only market is limited in size, as a customer focused lender we believe we should provide this as an option for borrowers who have a clear need for interest-only and have a sensible and credible repayment strategy in place.”