Previously for residential lending, where Sale of Property was used as the repayment vehicle, a maximum 50% LTV applied.
Mortgage customers who meet the minimum income criteria will now be able to borrow up to 75% LTV with a maximum of 50% LTV on an Interest Only basis.
Sole applicants need a minimum gross annual income of least £75,000, or for joint applications, one applicant must have a gross income of at least £75,000 or a joint gross income of at least £100,000.
After the interest only element of the lending, mortgage customers are required to have £300,000 of equity in the property.
For example, on a £600,000 property a customer who wishes to use sale of property as a repayment vehicle can now borrow a total of £450,000 split between £300,000 on interest only (50% LTV and minimum £300,000 interest only equity) and £150,000 on capital and interest (25% LTV). Under Barclays' previous policy the maximum available on interest only where sale of property was being used would have been £300,000.
