Barclays interest only mortgage – a minimum £75K income is now required.
If you are looking for an interest only mortgage you may need help to source a deal. Over the last year lenders have tightened their criteria or withdrawn from the market altogether.
Barclays are the latest to bring in interest only mortgage changes with the introduction of a minimum income requirement.
To qualify for a deal with the lender sole mortgage applicants are now required to have a £75,000 minimum income, and joint applicants a combined income of £100,000.
In addition to imposing minimum income requirement the lender has also introduced changes to repayment vehicle criteria.
If an interest only mortgage holder intends to use the sale of the property to repay the capital owed, Barclays now requires a minimum equity level of £300,000. The maximum loan to value level for deals with the sale of property as a means of repaying the debt will be 50%.
For other borrowers with other repayment strategies in place, the maximum loan to value level will remain at 75%.
These changes to Barclays interest only mortgage criteria will affect new borrowers, those on an existing deal will remain on the lender's previous criteria.
A spokesperson for the lender has said Barclays remains committed to interest only lending but is focusing on more affluent borrowers.
If you are interested in reviewing all lenders interest only products contact Deal Direct. We are up to date on all criteria and product changes, and can find the right mortgage to suit your finances.
Call an adviser today on 0800 048 8828.
