Lloyds caps Halifax interest-only LTV at 75%

Lloyds Banking Group is to restrict interest-only lending to up to 75 per cent loan-to-value for its Halifax brand.

The lender currently lends up to 85 per cent LTV on interest-only mortgages. The change will take effect on April 6.

A spokeswoman says the move brings Halifax’s lending criteria in line with LBG’s other brands.

In May, LBG capped the amount that can be borrowed on an interest-only basis at £500,000 and made changes to its accepted repayment vehicles.