In an exclusive interview with Mortgage Solutions, Ian Wilson, head of sales at Halifax, said that the lender is “acting responsibly by asking the customer what their plans are for repaying the loan.”
He said: “However long these customers have got left on their mortgage term, they should know from day one what they’re going to do to repay the loan.”
He explained that three letters have been sent to customers who have failed to get in touch with Halifax on how to repay their loan.
“Customers will only get a more strongly worded letter if they fail to respond to the three previous letters, which are much lighter in tone. We write to them because we need the information from them.”
Halifax said that for customers who don’t have a repayment plan in place, it will look at their individual circumstances.
“One thing we might be able to talk to the borrower about is whether we need to extend the term to switch to repayment.”
Wilson added that he had not heard of any criticism of the enquiry letters on interest-only during Halifax’s broker forums.