Coventry for intermediaries has expanded its interest-only lending criteria, now allowing up to 75% loan-to-value (LTV), increased from the previous 50% maximum.
The lender has also reduced the minimum equity requirement for properties outside London and the South East to £200,000, down from £300,000.
Suitable repayment vehicles include; sale of the mortgaged property, sale of another unencumbered property, pension lump sums and stocks and shares ISAs.
The changes follow a series of recent criteria enhancements from the lender. Last month it strengthened its support for first time buyers by introducing up to 6.5 times income for eligible employed first time buyers. It also increased maximum LTVs on new-build properties – allowing up to 95% for residential new build houses and 85% for residential new-build flats.
Jonathan Stinton, Head of Intermediary Relationships at Coventry Building Society, 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 using the MSO platform.
