Vida Homeloans launches new repayment option to boost borrower affordability
The launch of the new Part & Part repayment method reflects how Vida Homeloans is continuing to innovate its specialist product offering to address affordability by offering brokers greater flexibility when supporting customers with a wide range of borrowing needs and future financial plans.
The enhancement allows residential mortgages to be split between Capital & Interest and Interest Only repayment methods within a single mortgage, creating more tailored solutions for borrowers who may benefit from lower initial monthly payments while still reducing their mortgage balance over time.
The Interest Only element will be available up to a maximum of 75% LTV, with overall lending available up to 97% LTV. The enhancement will be available across all Vida's existing residential product range (excluding Right to Buy), and all current Interest Only repayment strategies will continue to be accepted.
The introduction of Part & Part broadens the options available to a diverse range of customers. Younger borrowers may benefit from reduced monthly commitments during the earlier years of homeownership, while customers with credible future repayment plans can utilise anticipated funds to repay the Interest Only portion at a later date.
The enhancement also provides additional flexibility for borrowers either approaching or in retirement, helping them manage monthly outgoings while retaining a manageable balance that can be repaid through pension provisions, downsizing, or other accepted repayment strategies. High-net-worth customers may also find Part & Part appealing as a way to preserve liquidity and support longer-term investment growth while continuing to reduce a proportion of their mortgage debt.
Additional criteria for Part & Part include:
- Residential mortgages only.
- The Interest Only element is capped at 75% LTV, and up a maximum balance of £1m.
- Overall lending is available up to 97% LTV (including fees added).
- A single mortgage term applies to both repayment elements.
- Leasehold properties on Interest Only or Part & Part mortgages must have a minimum of 70 years remaining at the end of the mortgage term.
- Right to Buy and Right to Acquire applications are not eligible.
- Lending into or in Retirement (LIR) cases are acceptable subject to standard criteria.
- Product fees, where added, will be allocated to the Capital & Interest element.
- All existing Vida Interest Only repayment strategies remain acceptable.
Dave Angel, Managing Director – Mortgage Product Management at Vida Homeloans, said:
"At Vida, we're committed to giving brokers more ways to meet the needs of customers whose circumstances don't always fit a standard approach. The introduction of Part & Part provides valuable flexibility, helping borrowers balance affordability today with clear plans for the future."
"Whether it's younger customers looking to keep initial monthly payments manageable, clients approaching, or already in, retirement, or borrowers with credible repayment strategies and future assets, Part & Part gives brokers another practical solution to support a wider range of specialist residential cases."
