"Further to the Group's strategic review of interest only lending, we would like to update you on a change affecting Halifax mortgage business.
With effect from Wednesday 6th April, the maximum loan to value for all new mortgages where all or some of the lending is on an interest only basis will be 75%. This will also be applicable to any existing customers that wish to port their mortgage.
This change will ensure that the interest only lending policy is aligned across all mortgage brands within Lloyds Banking Group"
This follows on from a policy change in October 2010 whereby only the following are acceptable sources of repayment and lists what documentation is required:
Endowments
Copy of the latest projection statement dated within the last 12 months
Pensions
Stocks & Shares ISA
Copy of the latest investment statement dated within the last 12 months
Unit Trusts/Open Ended Investment Companies (OEICs)
Copy of the latest investment statement dated within the last 12 months
Pensions
Copy of the latest projection statement dated within the last 12 months
Investment Bonds
Copy of the latest investment statement dated in the last 12 months
Copy of the latest investment statement dated in the last 12 months
UK Stocks & Shares
Copy of the share valuation on date of assessment
Savings (UK Sterling)
Copy of passbook/statement of balance
within the last 12 months
Sale of Second Home (UK
Property details, amount of any mortgage debt and mortgage provider. (Property valuation and land registry search carried out by us if needed e.g. if the property is unencumbered).
Halifax is alone at the moment in having different interest rates for interest only mortgages.
within the last 12 months
Property details, amount of any mortgage debt and mortgage provider. (Property valuation and land registry search carried out by us if needed e.g. if the property is unencumbered).
Halifax is alone at the moment in having different interest rates for interest only mortgages.
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