Halifax will raise the utmost mortgage to worth ratio on half interest-only/half capital compensation mortgages to 85% from 75% from tomorrow (30 April).
The lender says the transfer permits “customers who are taking some of their borrowing on an interest-only basis to borrow at an overall higher LTV”.
The most mortgage quantity available on pure interest-only stays 75% LTV, topic to full standards. The most quantities allowed on interest-only on the market of mortgaged property is unchanged.
The agency stresses that this alteration solely applies for functions ranging 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 aren’t any different modifications to the lender’s interest-only standards.