ING Direct has cut is maximum LTV for interest-only lending to 50% from 75%.
Borrowers can top up their borrowing to 80% LTV, as long as 30% is on a capital repayment basis.
Where the sale of a property is being used, borrowers must have a minimum of £165,000 equity in the property.
A cash ISA will no longer be acceptable as part of the repayment plans.
The following repayment plans are acceptable where they have been in place for at least three months prior to the date of application:
- Endowment or pension plans where the providers mid-point projected value is sufficient to repay the interest-only element.
- Unit trusts, PEP’s, stocks and shares ISA or professionally managed share portfolios where the current value is sufficient to repay the interest-only element.