Vida Homeloans has launched a new part-and-part repayment method, offering brokers greater flexibility when supporting customers.
The enhancement allows residential mortgages to be split between capital and interest and interest-only repayment methods within a single mortgage, creating more tailored solutions for borrowers who may benefit from lower initial monthly payments while still reducing their mortgage balance over time.
The interest-only element will be available up to a maximum of 75% LTV, and up a maximum balance of £1m, 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. Lending into or in retirement cases are acceptable subject to standard criteria.
Vida says the introduction of part-and-part may allow younger borrowers to benefit from reduced monthly commitments during the earlier years of homeownership, while customers with credible future repayment plans can utilise anticipated funds to repay the interest-only portion at a later date.
The enhancement also provides additional flexibility for borrowers either approaching or in retirement, helping them manage monthly outgoings while retaining a manageable balance that can be repaid through pension provisions, downsizing, or other accepted repayment strategies.
High-net-worth customers may also find part-and-part appealing as a way to preserve liquidity and support longer-term investment growth while continuing to reduce a proportion of their mortgage debt.
Dave Angel, managing director of 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-and-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-and-part gives brokers another practical solution to support a wider range of specialist residential cases."
