This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.
X
MM+201114+Cover+Small
Categories:Mortgages

Halifax places further restrictions on interest-only

  • Print
  • Comments (1)

Halifax Intermediaries will now require borrowers to provide evidence of a repayment plan prior to the offer stage when applying for interest-only mortgages.

The lender notified intermediaries of the change via email today. The change takes effect from May 31.

Existing customers wishing to convert all or part of their mortgage to interest-only will also have to provide evidence of a suitable repayment plan.

Lloyds Banking Group says the change brings Halifax Intermediaries’ criteria into line with the rest of the group.

LBG first made changes to its interest-only policy in May last year when it declared that selling your main residence was no longer an acceptable repayment method and asked borrowers to provide details of the method they would use to repay the mortgage capital.

The email says: “As a responsible lender, we believe that it is necessary to ensure our borrowers have an appropriate repayment strategy in place to pay off the mortgage balance at the end of their term.”

  • Print
  • Comments (1)

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

The Money Marketing CPD Centre
Build your annual CPD - you can log and plan your CPD hours for free with The Money Marketing CPD Centre.

Taxbriefs Advantage
Advantage is a digital reference source giving unbiased, independent, answers to your technical queries. Subscribe to Taxbriefs Advantage.

Readers' comments (1)

  • This is just to cover their backside and keep them sweet with the Government.

    It should be left to the clients to put in place a strategy as there are other ways to pay it off than using named investments.

    Unsuitable or offensive? Report this comment

Have your sayEdit my profile/screen name

You must sign in to make a comment

AXA Wealth

The Budget: What do people really know?


Fund Data

Editor's Pick



Poll

Do you think the idea of a single investment management charge could work in practice?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments