Newcastle extends interest-only mortgages to residential

Michael Lloyd

October 24, 2018

Newcastle Intermediaries has extended 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.”

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