Lloyds make changes to their interest only policy

Lloyds Banking Group have made changes to their interest only lending criteria and now Halifax, who are part of the group,  only offer a maximum loan to value of 75% for borrowers wanting to take out an interest only mortgage. Virtually all lenders have tightened up on their interest only policy and 75% loan to value is now the average maximum that is allowed. With effect from Wednesday 6th April, interest only borrowers will no longer be able to take a Halifax mortgage if they have a 15% deposit and this also affects customers wanting to port their mortgage. A spokesperson for Lloyds is quoted as saying: "We had different policies cross the group and Halifax was out of line. This change means Halifax is now in line with a consistent approach across all brands." There are a few lenders who are still prepared to be more flexible with their interest only policy. Trinity Financial have access to a mortgage lender that allows customers to borrow 90% of the property value and 75% of the mortgage can be on capital repayment, with the remaining 15% on interest only.  This makes the monthly repayments more affordable and the loan is still on track to be repaid by the end of the term. April 1, 2011