Coventry for Intermediaries has expanded its interest-only criteria, lifting the maximum loan-to-value (LTV) to 75% from 50%.
The lender has also cut the minimum equity requirement for properties outside London and the South East to £200,000, down from £300,000. Suitable repayment vehicles under the interest-only criteria include the sale of the mortgaged property, the sale of another unencumbered property, pension lump sums and stocks and shares ISAs.
The changes follow other criteria updates from the lender. Coventry introduced a multiple of up to 6.5 times income for eligible employed first-time buyers last month, and raised maximum LTVs on new-build properties to 95% for residential houses and 85% for residential flats.
Jonathan Stinton, head of intermediary relationships at Coventry Building Society (pictured), said: “We’re continuing to look for ways to give brokers more options when supporting their clients’ homeownership and property goals. By broadening our interest-only criteria, we’re making this option available to a wider range of suitable borrowers.
"These latest changes build on a number of enhancements we’ve made in recent months, all designed to help brokers find the right solutions for their clients.”
The changes are available immediately, and brokers can submit new applications online through the MSO platform.
