"Having introduced the sale of mortgaged property as a repayment vehicle for interest-only mortgages last June, we have seen strong growth in our business."
The Bank will now accept a maximum of 30% of gross annual bonus for sole or 30% of combined gross annual bonuses for joint applicants.
Maximum age is the lower of anticipated retirement age or maximum working age, plus 11 months. This will allow for bonuses to be paid after retirement.
Cash must have been held in a savings or current account for a minimum of three months and a minimum of £50k is required, which can be held over several accounts.
Scottish Widows Bank has also improved its existing pension repayment vehicle to accept projected total fund value rather than current figures.
Projection must be a minimum of £400k of which 15% will be used for interest-only i.e. minimum £60k. For final salary pensions where no projected fund is provided, the tax free lump sum must be a minimum of £100k of which 60% will be used for interest-only.
Customers can use multiple pension funds, as long as each fund meets minimum requirements, and the maximum age is the lower of anticipated retirement age or maximum working age.
Martin Fleming, MD at Scottish Widows Bank, said: “Having introduced the sale of mortgaged property as a repayment vehicle for interest-only mortgages last June, we have seen strong growth in our business.
“We regularly review our products and policies to reflect the needs of our target customers, and expanding the repayment options today will further improve our interest only proposition.
“A flexible interest only policy together with offset on all our products (including our five-year fixed rate) helps our customers to manage change and save money over the long term.”
