You may have heard how great we are for interesting Interest Only cases. But as you know, the proof of the pudding is in the eating, so grab yourself a spoon and tuck into this bowl of interesting Interest Only deliciousness.
This recently completed case illustrates our common sense approach and flexible lending criteria…
A single applicant wanted to borrow £175,000 to purchase a beautiful stone house for £600,000 in the heart of Scotland. The applicant was divorced and close to retirement age however expressed that he loved his job and intended to work until he was 80 (at least!).
Although he had missed a utility bill payment, we were comfortable with his borrowing for several reasons. Firstly, the case was a low LTV and our borrower held a significant number of shares in his employer’s business where he has worked for more than 10 years. In addition, he also had some other assets which could be used as the repayment vehicle at the end of the term. Affordability was also assessed on the interest only monthly repayment as opposed to other lenders who use the capital and interest repayment figure.