Platform has announced that it will cap interest-only mortgages at 75% LTV with a maximum loan amount of £500,000 from 13 December, 2010.
The lender revealed that it will also be increasing the minimum age for a buy-to-let mortgage from 18 to 25 as well as raising the minimum income required from £15,000 to £20,000 a year.
Andy Hammerton, spokesman for Platform, said: “We are doing this to bring us in line with the market. There is also the FSA review of interest-only mortgages and we believe that by making these changes now, it could help lenders avoid greater regulatory intervention.”
The announcement followed the Royal Bank of Scotland and Coventry Building Society’s decisions to halt interest-only mortgages for first-time buyers.
