Head Office: Yorkshire House, Yorkshire Drive, Bradford BD5 8LJ. Yorkshire Building Society is entered in the Financial Services Register and its registration number is 106085. Yorkshire Building Society is a member of the Building Societies Association and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Stocks and Shares ISA: Copy of share certificates/statements containing evidence of share-holdings and their valuation. Stocks and Shares ISA, Unit Trusts/OEIC, Investment Bonds: Copy of latest statement and/or The investment must have been in place for a minimum of 12 months.The investments must be in pounds sterling.The total can include eligible savings referred to above. The current value of the investments must cover 100% of the I/O element of the mortgage.Latest endowment policy statement, dated in the last 12 months. It must be a UK Policy provided by a regulated firm.The end of the endowment term must not exceed end of mortgage term.The endowment must have been in place for at least 12 months.The projected mid-point maturity value must cover 100% of the interest only borrowing.The savings must be in pounds sterling.The savings must have been held for a minimum of 12 months.The total can include eligible investments referred to below. The current value of the savings must cover 100% of the I/O element.Your full mortgage term must take you beyond the age of 55 and your declared retirement age must be at or before the end of the term of the mortgage.Įvidence Required: Latest Pension Statement.For defined benefit schemes – A maximum of 90% of the tax free lump sum can be used towards your strategy.For defined contribution schemes and Self Invested Pension Plan (SIPP) – A maximum of 60% of tax-free lump sum (15% of total pension pot) can be used towards your strategy.The property must be in your name/s only with no other parties named.Įvidence Required: If any property is mortgaged by another lender, a copy of the latest mortgage statement.The property must be in located in the UK.A Maximum of 75% of the equity in the property can be used as your repayment strategy.The property must have a minimum equity of £250,000 at the time of application for non London properties and £300,000 for properties located in London.Total borrowing can go to 85% LTV (a maximum of 75% can be on Interest Only) by using an additional repayment strategy or borrowing on a Capital Repayment basis.This can be used to cover up to a maximum of 60% of the value of the property.Sale of Mortgage Property at the end of term Please see the table below for further details. There are a number of acceptable repayment strategies that can be used to support an interest only mortgage. What are the acceptable repayment strategies? You must also provide this evidence again at least once during the mortgage term.You must provide evidence of your repayment strategy during the application process.You must have an acceptable repayment strategy in place to repay the loan at the end of the term. The term can only exceed your stated retirement age or age 70, whichever is sooner where income is not required to make the loan affordable. Interest only borrowing is not permitted if the term of your mortgage goes beyond your stated retirement age or age 70, whichever is sooner.Interest only borrowing for debt consolidation is not permitted.You can borrow up to a maximum of 75% Loan to Value.Is it suitable for me?Ĭustomers who are new to Yorkshire Building Society and looking to take out a mortgage on interest only must meet the following: In order to pay off the loan amount at the end of the term, you will need to have an acceptable repayment strategy. An interest only mortgage is where your monthly payments only cover the interest charged on the amount you borrow and you don't pay off any of the loan amount.
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