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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A fee of £495 is payable on completion of the mortgage and Neil Soundy Financial Services Ltd will keep the commission received from the lender for arranging the mortgage.
Neil Soundy Financial Services Ltd is an appointed representative of HL Partnership Ltd which is authorised and regulated by the Financial Services Authority.
The Financial Conduct Authority does not regulate some forms of buy-to-lets.
We do not give or imply legal or taxation advice. We recommend you contact a solicitor or accountant for advice in these areas.
Think carefully before securing other debts against your home/property. Your home/property may be repossessed if you do not keep up repayments on your mortgage.