RBS and NatWest to offer interest-only mortgages from 21 September to high earners

 
Jessica Morris
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The loans will be available to those earning £100,000 or more a year (Source: Getty)

RBS and NatWest will be offering their wealthier customers interest-only mortgages for the first time since December 2012.

The loans, available from 21 September, will only be offered to those earning £100,000 or more a year, excluding bonuses, with a maxium loan-to-value of 75 per cent.

Customers must also have an acceptable repayment strategy, such as savings or a pension plan, to make sure they are able to repay before the loan period ends.

Read more: Citizens Advice warns of ticking timebomb for one million interest-only mortgage customers

A number of the UK's biggest banks scrapped interest-only mortgages in the wake of the financial crisis, citing falling demand and increasing regulation on higher risk lending.

But RBS said increased customer demand drove their decision to re-enter the interest-only mortgage market.

"Interest only mortgages will give our customers more choice and provide additional flexibility in how they repay their mortgage," Lloyd Cochrane, head of mortgages and protection for RBS and NatWest, said.

"We are re-entering this market due to customer demand and we will keep in touch with our customers to support them to stay on track with repaying their mortgage."

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