Vida Homeloans launches part and part repayment option to support borrower affordability
The new repayment method is designed to provide greater flexibility for borrowers looking to manage monthly payments while continuing to reduce part of their mortgage balance.
Vida Homeloans has launched a part and part repayment option across its residential mortgage range, allowing brokers to split borrowing between Capital & Interest and Interest Only within a single mortgage.
The new repayment method is designed to provide greater flexibility for borrowers looking to manage monthly payments while continuing to reduce part of their mortgage balance.
The Interest Only element will be available up to a maximum of 75% loan-to-value (LTV), with overall lending available up to 97% LTV.
The enhancement will be available across all Vida’s existing residential product range (excluding Right to Buy), and all current Interest Only repayment strategies will continue to be accepted.
Vida said the option could support younger borrowers seeking to manage initial monthly commitments, as well as customers approaching or in retirement and those with credible future repayment strategies.
Lending into or in retirement cases will be accepted subject to the lender’s standard criteria.
For leasehold properties using Interest Only or part and part, at least 70 years must remain on the lease at the end of the mortgage term.
Product fees that are added to the mortgage will be allocated to the Capital and Interest element.
Dave Angel, managing director – mortgage product management at Vida Homeloans, said: “At Vida, we’re committed to giving brokers more ways to meet the needs of customers whose circumstances don’t always fit a standard approach.
“The introduction of Part & Part provides valuable flexibility, helping borrowers balance affordability today with clear plans for the future.
“Whether it’s younger customers looking to keep initial monthly payments manageable, clients approaching, or already in, retirement, or borrowers with credible repayment strategies and future assets, Part & Part gives brokers another practical solution to support a wider range of specialist residential cases.”
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