Following on from the announcement last week that Halifax will require all of their borrowers to submit evidence of a repayment plan, Lloyds have extended this requirement to the entire banking group.
Stephen Noakes, commercial director of mortgages at Lloyds Banking Group, said: “Borrowers applying for an interest only mortgage are now required to provide evidence of a suitable repayment plan before they receive a mortgage offer. With these improved controls in place, we are well placed to remove the current price premium applied to interest-only, and make options available for those borrowing up to £1 million on this basis.”
