Halifax will lift the maximum loan to value ratio on part interest-only/part capital repayment mortgages to 85% from 75% from tomorrow (30 April).
The lender says the move allows “customers who are taking some of their borrowing on an interest-only basis to borrow at an overall higher LTV”.
The maximum loan amount available on pure interest-only remains 75% LTV, subject to full criteria. The maximum amounts allowed on interest-only for sale of mortgaged property is unchanged.
The firm stresses that this change only applies for applications starting from tomorrow.
“If an application was started before this date, even if just a Decision in Principle or Illustration was keyed, the change will not apply,” it says.
There are no other changes to the lender’s interest-only criteria.
