A spokeswoman from Barclays said: “The majority of our customers who take out interest-only loans do so for £300,000 so nothing has changed we are just have just taken steps to define and clarify our policy.”
She added that this decision was not to discourage applicants from taking out interest-only mortgages because the affordability assessment is still the same and the loan to value will remain at 75%.
The changes to Barclays’ interest-only products are applicable to both intermediary and direct channels.
