RBS mortgage withdraws from interest-only mortgage lending.
RBS mortgages will no longer be offered on an interest -only basis. This change applies to new lending, if you have an existing deal nothing will change.
The lender has advised that it will now only offer RBS mortgage products on a repayment basis. Other lenders who have also recently withdrawn from offering this type of mortgage include the Co-op and Nationwide.
While some lenders have withdrawn fromr the market, other lenders are prepared to still offer mortgages on this basis. Santander advise they will consider interest -only mortgages for up to 75% LTV.
Criteria is tighter than it once was, but if you have a 25% - 50% deposit and an adequate repayment vehicle in place, a deal should be achievable. If you would like an interest-only mortgage call Deal Direct for advice and a quote.
The FSA now advise that interest-only has a place in the market, however such deals are not right for everybody. If you have an interest-only mortgage with no repayment plan in place, you might want to consider remortgaging to a repayment deal while mortgage rates are low. There are several lenders offering a 5 year fix at under 3%.
Whatever your mortgage needs call Deal Direct for a quote.
