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......without documentary evidence
Originally posted by 5corpio
Britain’s biggest mortgage lender has announced the end of interest-only mortgages without documentary evidence of how the loan is going to be repaid.
Halifax requires borrowers to provide written proof of how the loan will be repaid before a mortgage offer is made. Until April 6, it only asked borrowers to say that they had a repayment vehicle in place before the mortgage offer.
It is the latest example of banks and building societies tightening their lending criteria amid growing fears that home owners will default on their loans due to high unemployment.
Halifax allows borrowers to repay interest-only mortgages using endowment policies, Isas, pensions, shares, savings or the sale of a second home.
It means a borrower – who says they will use the money saved in Individual Savings Accounts to repay their home loan – must provide a copy of their latest Isa statement for the last 12 months before they can receive an offer from the lender.
Melanie Bien, mortgage brokers Private Finance, said: “High-street lenders have been tightening their interest-only criteria since the downturn because they regard these loans as.....Read more HERE
Halifax requires borrowers to provide written proof of how the loan will be repaid before a mortgage offer is made. Until April 6, it only asked borrowers to say that they had a repayment vehicle in place before the mortgage offer.
It is the latest example of banks and building societies tightening their lending criteria amid growing fears that home owners will default on their loans due to high unemployment.
Halifax allows borrowers to repay interest-only mortgages using endowment policies, Isas, pensions, shares, savings or the sale of a second home.
It means a borrower – who says they will use the money saved in Individual Savings Accounts to repay their home loan – must provide a copy of their latest Isa statement for the last 12 months before they can receive an offer from the lender.
Melanie Bien, mortgage brokers Private Finance, said: “High-street lenders have been tightening their interest-only criteria since the downturn because they regard these loans as.....Read more HERE
Personal View: RISKY!!!!!!!! Woudn't entertain going down a route especially with Halifax/HBOS/Lloyds Owend!!!!!!!! They have more DEBT than me i would say.