RBS mortgage criteria is restricted for interest only lending.
RBS mortgage holders are the latest to be affected by interest-only lending restrictions.
The Royal Bank of Scotland have advised that they now only intend to extend interest only mortgage lending to those applicants who have a minimum income of £50,000, who have banked with the lender for a minimum three months.
RBS mortgage interest-only deals will also no longer be available for first-time buyers.
There is some good news though as the lender's interest only LTV will remain at 75 per cent LTV.
NatWest recently suspended its interest-only products through brokers but announced plans to introduce two new purchase deals as interest-only options. Deals will be offered at both 60 and 70 per cent LTV and the 2 year fixed products will be offered at 2.89 and 3.29 per cent with a £999 fee.
To be eligible an applicant must have an active RBS or NatWest current account in which they have paid a minimum of the 3 months salary payments of at least £1,000.
Acceptable repayment vehicles for a Natwest of RBS mortgage deal on an interest only basis include pensions, endowments and ISAs/PEPs.
A spokesperson commented saying that the new lending requirements have been designed to help with market volatility and are part of the RBS and NatWest responsible lending policy.
For a RBS mortgage deal contact Deal Direct and we will negotiate with the lender on your behalf.
