Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Vida Homeloans Introduces Part and Part Repayment Option for Residential Mortgages

Vida Homeloans has launched a new part and part repayment method for residential mortgages. The new option allows borrowers to split their mortgage between capital and interest, and interest-only repayment methods within a single product.

The part and part repayment method is designed to help borrowers benefit from lower initial monthly payments while still reducing their mortgage balance. According to Vida, the interest-only portion is available up to a maximum of 75% loan to value (LTV), with overall lending available up to 97% LTV.

This enhancement is available across Vida’s entire existing residential product range, with the exception of Right to Buy products. For leasehold properties using interest-only or part and part mortgages, there must be a minimum of 70 years remaining on the lease at the end of the mortgage term.

Product fees, if added, will be allocated to the capital and interest element of the mortgage. Vida confirmed that all existing interest-only repayment strategies remain acceptable under the new arrangement.

For letting agents and inventory clerks, the introduction of this repayment method may be relevant for clients considering new mortgage options, particularly those seeking flexibility in managing monthly payments or planning for future asset changes. The changes may also impact leasehold property transactions, given the minimum lease term requirement.