Halifax is set to raise the maximum loan to value (LTV) on its part interest-only and part capital repayment mortgages from 75% to 85%, starting tomorrow, 30th April.
This adjustment will allow customers who opt for a portion of their mortgage to be interest-only to access higher overall LTV borrowing.
While the LTV for purely interest-only mortgages remains capped at 75% based on full criteria, the LTV for mortgages that involve the sale of the mortgaged property (SOMP) will not be altered.
The change is applicable only to applications initiated from 30th April onwards. Applications, including Decision in Principle or Illustrations, started before this date are not eligible for the new terms.
Nicholas Mendes, mortgage technical manager at John Charcol, commented on the update: “Great to see Halifax continue pushing the dial forward and elevate its options for mortgage holders further.
“These can help reduce the monthly payments borrowers would face on a repayment mortgage without having to go on a mortgage that’s solely interest-only and have a large lump sum to repay at the end of the term.
“For example, if you had a mortgage of £200,000, you could have £100,000 on repayment and £100,000 on interest-only.”
