With effect from 18 April, all new residential applications will be subject to the requirement, with BM Solutions checking that it is satisfied the repayment strategy is appropriate to repay the full loan before it will make an offer.

Currently, the lender only makes sample checks of interest-only repayment vehicles across its applications.

Full checks of repayment vehicles are already in place in Lloyds Banking Group’s (LBG) branch network and it confirmed that it will look to introduce the process across all brands, including Halifax, in due course.

The changes do not affect BM Solutions’ buy-to-let deals and it said it believed the change would affect only a small number of cases.

The shift will also mean borrowers will be required to provide evidence of a repayment vehicle at regular stages throughout the term of the mortgage.

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It marks the latest crackdown by LBG on interest only, after it restricted interest-only deals to 75% LTV last week and limited the types of repayment vehicle it will accept last year.

A BM Solutions spokesperson said: “Since our interest only review in 2010, we have been clear about the importance of ensuring that customers that choose to borrow on an interest-only basis have an appropriate repayment strategy in place.

“This process of verifying the repayment strategy prior to producing the mortgage offer demonstrates our responsible approach in this area.”