Nat West withdraw interest only mortgage option

Nat West Mortgages

Nat West drop interest only

Late yesterday afternoon Nat West announced a temporary withdrawal of interest only options on it’s mortgage range.

This is a precursor to the Lender announcing a new range of interest only mortgage products which we expect next week.

This spilt of product between mortgages to be taken on a capital repayment basis and mortgages taken on an interest only basis is not new in the market. We have seen Halifax set prices differentials between capital repayment and interest only deals in the past.

What form the Nat West changes will take remains to be seen. Our guess is that lower loan to values on the interest only range is inevitable, and higher pricing on the range a possibility.

The message here is that securing an interest only product is more difficult than ever and is best achieved with the help of an independent mortgage broker.

If you require an interest only mortgage – contact us now.

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