Scottish Widows Bank makes interest-only changes
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Scottish Widows Bank, part of Lloyds Banking Group is now only offering interest-only borrowing up to a maximum 75% LTV.
It has also priced its interest-only products 0.2% higher than repayment based products.
The maximum loan amount on interest-only is £500,000.
It says these changes reflect the additional risk with, and associated operational resource required for interest-only lending.
It says differentiated interest-only pricing allows it to continue to offer interest-only products that meet a genuine customer demand whilst reflecting the additional risk and resource requirements.
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