The Cambridge expands interest-only mortgage range

Cambridge Building Society has expanded its interest-only mortgage range with a new two-year discounted mortgage of 3.74% and a five-year fixed rate of 5.34%.

There is no early repayment charge on the two-year interest only discounted mortgage.

Other advantages include no minimum income requirement and loans can be for up to 40 years, which could take the eldest applicant to 80 years of age.

All products have a minimum loan size of £75,000 with a maximum of £750,000. Application and completion fees will be applied to all interest-only products.

The Society will accept repayment methods including pension and investment portfolios for maximum loan to value borrowing up to 70% and up to 66% LTV of the secured property provided it amounts to £225,000 worth of equity.

Intermediary manager, Kathy Bowes, said: “We have launched these additional products to broaden the range and provide greater flexibility to a wider range of applicants, in line with our strategy to provide appropriate access to homes and housing.

“Mortgage affordability is assessed on an interest-only basis and our team of expert underwriters look at each application individually, which enables us to make sound lending decisions.”