Lloyds Banking Group (LBG) is further tightening the criteria it applies to its Halifax-branded interest-only mortgages and scrapping them completely on homeloans over £500,000.
The lender will remove three of its existing repayment vehicle options from interest-only applications. Aspiring borrowers will not in future be given the option of selling their home, selling their business or using an inheritance as a means of repaying the capital owing at the end of the mortgage term. In recent months LBG has applied a price weighting to interest-only Halifax mortgages taken out through brokers. Borrowers are now charged 0.2% more on both tracker and fixed rates if they opt for an interest-only arrangement, rather than a repayment-type mortgage. "We believe we a...
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