Halifax tighten interest-only mortgage criteria

Mortgage borrowers will have to provide more proof that they can meet their repayments before a loan is approved. Approvals for mortgages will only be given to consumers who have evidence that they can pay back the borrowed sum. Halifax will now require interest-only mortgage applicants to provide proof that they can repay their home loan before an offer is made. Until April 6 borrowers did not have to provide documentary evidence before securing a mortgage - it was enough to state that they had a means of paying back the loan without proving it.