View more on these topics

Principality Building Society restricts interest-only

Principality Building Society is restricting its interest-only offering to just three products.

The Welsh lender is still offering interest-only or part interest-only deals up to 85% LTV.

Its 85% LTV deal is available on a three-year discount rate, with a discount of 0.3% from its SVR, currently 4.99%.

It also has a £999 product fee and £150 discharge fee.

The lender is also offering 75% and 50% LTV deals available at a three-year 0.5% and 1.4% SVR discount respectively.

All deals allow early repayments of up to 3% until the end of May 2015.

Interest-only was previously available at Principality on a wider range of products including fixed rate deals.

It follows moves by a number of lenders to restrict interest-only in different ways from stricter criteria to lowering LTVs.

A spokeswoman for Principality says as other lenders have withdrawn from interest-only they have decide to restrict it to manage volumes.

She says: “Recognising that some borrowers may need a higher LTV we have not restricted this but have ensured that varying degrees of LTV are still available for these borrowers.”


Green light for first tenancy deposit scheme in Scotland

The Scottish government has approved its first tenancy deposit protection scheme, The Letting Protection Service Scotland, which will launch on July 2. The Tenancy Deposit Schemes (Scotland) Regulations 2011 came into force on March 7 2011 following approval from Parliament. It then entered into a consultation process between December 2011 and January 2012, with the […]

Nationwide helps small builders

Nationwide has launched a scheme that allows smaller builders to get on its NewBuy Guarantee panel. To be on a lender’s panel for NewBuy builders are expected to be able to build around 100 properties during three years. This is because they need to have a range of properties so the risk can be spread […]

Angela Knight decides to call it a day at BBA

After five years at the British Bankers’ Association, chief executive Angela Knight has announced her intention to step down. She will leave in the summer, by which time it is hoped her successor will have been found. Knight says: “I have been at the BBA at a time of extraordinary difficulty and during a crisis […]


News and expert analysis straight to your inbox

Sign up