The Cambridge Building Society has introduced a 2-year interest only discounted mortgage of 3.74% and a 5-year fixed rate of 5.34%.
The Society already offers a 2-year fixed rate of 5.64%, and there is no early repayment charge on the new 2-year interest only discounted mortgage.
Other advantages of the new range include a no minimum income requirement, and as well as this, loans can be for up to 40 years, which could take the eldest applicant to 80 years of age.
Kathy Bowes, intermediary manager at the Society, 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.”
All products have a minimum loan size of £75,000 with a maximum of £750,000, and 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% loan-to-value (LTV) of the secured property provided it amounts to £225,000 worth of equity.
