Lloyds Banking Group borrowers (which include the Halifax) who have an interest only mortgage and now require a further advance will now have to supply evidence of a repayment plan for the entire loan.
Previously, Lloyds Group asked borrowers to provide evidence of a repayment method only for extra that they sought on the loan. From the 28/05/2012 borrowers have to show evidence that they can pay off the entire loan if their existing mortgage is interest only.
Since the start of the year a number of lenders have significantly tightened their interest only criteria, with many capping the maximum loan to value at 50%. The Co-operative Bank Group has pulled out of interest only completely. The lenders are now looking for a credible repayment strategy. Contact me for the latest criteria.
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Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.