Coventry for Intermediaries has increased its maximum interest-only loan-to-value from 50% to 75%. It has also reduced the minimum equity requirement outside London and the South East from £300,000 to £200,000, potentially opening the proposition to a wider group of clients with acceptable repayment strategies.
This creates a useful advice opportunity for borrowers seeking payment flexibility, but it also raises the importance of robust evidence around the repayment vehicle, future affordability and the client’s tolerance for refinancing or property-value risk. Advisers should avoid treating the higher LTV as a simple affordability solution.
AI tools could assist with fact-find completeness and repayment-strategy reminders, particularly for periodic reviews. However, suitability assessment and the evaluation of a client’s repayment plan remain matters for regulated adviser judgement and lender underwriting.