If the applicant(s) have decided on an Interest Only repayment type on a residential application , we will require some additional information from regarding their repayment strategy at the end of the mortgage term.
The additional information required will depend on their specific repayment strategy and most will require some documentary evidence.
Acceptable types of repayment strategy, and the types of information required are:
Sale of Security/Downsizing – where sale of the security property is the declared repayment strategy for a residential mortgage, Pepper will conduct plausibility checks around whether this amount of equity is likely to be sufficient to cover the purchase of a new property and whether downsizing is a viable option. We require the following detail:
- Why are the applicants planning to move in X years?
- Where are they planning to move to?
- What property type will they be looking at?
Sale of Other UK Property:
- Property to be situated in the UK (excluding Northern Ireland).
- Details of any secured lending against the property
Endowment / ISA (including previous PEP/TESSA)
- Copy of agreement or statement to confirm the monthly payment, and pay-out value
- We will include this monthly payment will be included in affordability
Stocks and Shares
- We will include any premium associated with the repayment vehicle in our affordability calculation
- Evidence to support payment or premium declared by the applicant i.e. Bank statements, Government letter.
- Evidence of pension lump sum projection.
- Evidence of previously accrued fund value.
Sale of Non UK Property
- Property to be situated outside the UK
- Current estimated value of the property
- Details of any secured lending against the property must be provided