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ING Direct cuts interest-only LTV to 50%

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.

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Week in numbers

8.1% – The annual growth rate of the Chinese economy in Q1 2012, lower than expectations and down on 8.9% in Q1 2011. 0.3% – The percentage consumer prices edged up in March, mainly due to the rising cost of petrol. £13.8m – The amount Goldman Sachs was fined by the Securities and Exchange Commission […]

Leeds calls time on the use of income multiples

Leeds Building Society is no longer using income multiples to assess borrowers’ affordability. From today, Leeds will only accept applications using its new affordability calculator. It will take into account income, other financial commitments and average house- hold expenditure figures, provided by the Office for National Statistics, to reach a decision on the maximum loan […]

Europe: why persist with value today?

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