First-time Buyers

Scottish Widows offers interest-only

Julia Rampen
Written By:
Julia Rampen

Scottish Widows Bank has added two interest-only products to its professional mortgage range.

The lender is launching a 60% loan-to-value (LTV) mortgage at 2.19% and another at 60-75% LTV at 2.59%.

Both products are two year fixed-rate mortgages with a £1,499 fee. The products are available to home buyers and remortgagors on both a repayment and interest-only basis.

Scottish Widows Bank managing director Mike Jones said: “We are pleased to be able to add more products to our compelling product range and to be able to continue to support this sector of the market.

“We are offering competitive rates and have an excellent range of products for professional mortgage customers to choose from supported by our strong service proposition.”

Scottish Widows Bank relaunched in February this year, with the promise of “big plans” for the mortgage market this year.

Earlier this week, on its first day as new regulator, the FCA said it felt many lenders had overreacted by tightening interest-only criteria or pulling out of the sector altogether, fearful of retrospective regulatory sanctions.