"We are always ready to adapt our offering to the changing demands of the market and economic climate"
Nottingham Building Society has introduced the Sale of Mortgage Property (SOMP) as an approved method of repayment for interest-only mortgages.
Various repayment methods are traditionally available, including pension plan lump sums, stocks and shares ISAs, and the sale of investment properties or second homes.
The Nottingham is now including Sale of Mortgage Property (SOMP) as an approved repayment method following the end of the interest-only mortgage term, giving brokers and borrowers greater choices in managing their mortgages effectively.
Nottingham Building Society has a maximum LTV of 80% for interest-only mortgages and offers part-repayment and part interest-only in addition to solely interest-only.
Under the new offering, for borrowers who choose SOMP as their primary repayment method, The Nottingham sets the maximum LTV at up to 60%, with borrowers having at least £200,000 equity in their property (or £300,000 in London and the South East).
Borrowers can use more than one repayment method, for optimal financial planning. This allows borrowers to still go to 80% LTV on interest-only, using one of The Nottingham’s other stated repayment vehicles or SOMP up to 60% plus one of their stated repayment options.
Sales director at The Nottingham, Alison Pallet, said: “The Nottingham remains committed to strengthening its relationships with brokers and empowering borrowers through innovative solutions and continues to evolve its services to meet the dynamic needs of customers effectively. We are always ready to adapt our offering to the changing demands of the market and economic climate, and this latest update will provide customers with a wider range of solutions that work for them.”
