Coventry for intermediaries has widened access to interest-only mortgages by increasing its maximum loan-to-value (LTV) from 50% to 75%.

The lender has also lowered the minimum equity requirement for properties outside London and the South East from £300,000 to £200,000, potentially making interest-only borrowing available to a broader range of customers.

Under the revised criteria, acceptable repayment strategies include selling the mortgaged property, selling another unencumbered property, taking a pension lump sum or using stocks and shares ISAs.

The changes take effect immediately, with brokers able to submit applications through Coventry’s MSO platform.

FURTHER CRITERIA CHANGES

The interest-only revisions follow several changes to Coventry’s residential lending criteria in recent weeks.

In September, the building society introduced lending of up to 6.5 times income for eligible employed first-time buyers, alongside higher LTV limits for new-build properties.

The maximum LTV for residential new-build houses increased to 95%, while the limit for new-build flats rose to 85%.

Jonathan Stinton (pictured), head of intermediary relationships at Coventry Building Society, said: “We’re continuing to look for ways to give brokers more options when supporting their clients’ homeownership and property goals.

“By broadening our interest-only criteria, we’re making this option available to a wider range of suitable borrowers.

“These latest changes build on a number of enhancements we’ve made in recent months, all designed to help brokers find the right solutions for their clients.”