Scottish Widows reviews LTV on “professional” loans
by Gill Montia
Scottish Widows has reduced the loan-to-value (LTV) ratio on its professional mortgages to 95%.
Previously, members of UK professions had been able to borrow up to 100% of the purchase price of a residential property.
Mortgages with 100% LTV and competitive interest rates have all but disappeared in recent weeks. For example, Abbey is now charging 7.64% for a five-year fixed-rate deal.
Scottish Widows says it remains committed to the professional market and its decision is based on both current mortgage conditions and the need to be a responsible lender.
According to a spokeswoman: “We are looking at the whole of the market place and we not saying that we don’t trust our customers. That is not why we have made the change.”
Applications for Scottish Widows’ professional mortgages are assessed on an individual basis rather than by a rigid underwriting formula.
However, the loans are only available to fully qualified doctors, dentists, accountants, optometrist, barristers, solicitors, vets, pharmacists and teachers.
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