Halifax mortgage lending criteria

We have not verified the information with the lender. You should not rely on this information. If you have an area of concern then please ask us.

Halifax mortgage lending criteria

Mortgage Advances

Up to £1,000,000

Notes

Illustration Type = ESIS.

Mortgage is Portable, Mortgage is Flexible, Under payments allowed., Overpayments allowed.

In the future, you can apply for a new loan on another property. If Halifax agrees to the new loan you can take the

following product(s) and an early repayment charge with you for the remainder of the product rate period(s). New loan

applications are assessed in line with the lending policy at that time which may, for example, affect the repayment

method, loan amount or term. The new loan will be subject to the terms and conditions in force when you make your

application.

Repayment and Interest Only.

MAXIMUM LTV ON INTEREST ONLY AND PART & PART IS 75% LTV.

INCOME MULTIPLES FOR LOANS OVER £500,000 - £750,000

Up to 85% LTV = 5.00x

85.01-90% LTV = 4.00x

90.01%+ = n/a

INCOME MULTIPLES FOR LOANS OVER £750,000

Up to 75% LTV = 5.00x

75.01-85% LTV = 4.00x

85.01%+ = n/a

The maximum LTV for Second Home Loans is 75%.

Scottish Single Survey accepted providing valuer is in on our panel and it is less than 3 months old.

Interest only accepted provided that it meets our interest only policy

Payment Holidays Allowed. Payment holidays may be available but are subject to rules that may be changed from time to

time. If you apply, checks that you meet the rules in force at the time will be made. Payment holidays are not guaranteed.

The current rules can be found in the ‘Information about your mortgage’ booklet which is issued with mortgage offers but

you should ask for details of the latest rules when you make your request.

If your customer chooses a mortgage product with early repayment charges, as a concession, in any calendar year, they

may repay up to 10% of the amount outstanding on their product, without having to pay an early repayment charge. We

reserve the right to change or withdraw this concession at any time.

You may miss or reduce your monthly payments provided that you have previously made extra payments

(overpayments). The total amount of underpayment(s) must not be more than the previous overpayments. Whenever we

recalculate your monthly mortgage payment, we use any overpayments you have made to reduce what you owe; once

we have done this, you will need to start building up new overpayments before you will be able to underpay again.

The availability of the mortgage product chosen is based on the amount of loan as a percentage of the value of the

property. Changes to the loan amount or the property value could alter the availability of this product. If this is the case,

please ask for a revised illustration.

If the amount you owe under your mortgage comes to exceed the original loan, the lender may charge interest on the

excess at Halifax standard variable rate, currently 4.24%.

Capital Rest Period : Daily

Repayment Types

Repayment Yes

Endowment 75% LTV

PEP 75% LTV

Pension 75% LTV

Interest only (no RV) 75% LTV

With Profits 75% LTV

Unit Linked 75% LTV

ISA 75% LTV

Split Repayment 75% LTV

Fees

Arrangement : £varies Can be Added

Booking : None

Early Repayment Charges

varies

Higher Lending

None

Valuation

Basic:

up to £10,000,000 - £100

Homebuyers:

up to £100,000 - £365

up to £150,000 - £395

up to £200,000 - £445

up to £300,000 - £565

up to £400,000 - £695

up to £500,000 - £840

up to £600,000 - £980

up to £700,000 - £1125

up to £800,000 - £1265

up to £900,000 - £1410

up to £1,000,000 - £1550

up to £1,200,000 - £1750

up to £1,400,000 - £1955

up to £1,600,000 - £2155

up to £1,800,000 - £2360

up to £2,000,000 - £2560

up to £2,200,000 - £2765

up to £2,400,000 - £2965

up to £2,600,000 - £3165

up to £2,800,000 - £3370

up to £3,000,000 - £3570

up to £3,200,000 - £3775

up to £3,400,000 - £3975

up to £3,600,000 - £4180

up to £3,800,000 - £4380

up to £4,000,000 - £4580

up to £4,200,000 - £4785

up to £4,400,000 - £4985

up to £4,600,000 - £5190

up to £4,800,000 - £5390

up to £5,000,000 - £5595

up to £5,500,000 - £6100

up to £6,000,000 - £6605

up to £6,500,000 - £7110

up to £7,000,000 - £7615

up to £7,500,000 - £8120

up to £8,000,000 - £8625

up to £8,500,000 - £9130

up to £9,000,000 - £9635

up to £9,500,000 - £10145

up to £10,000,000 - £10650

Min Valuation £40000

No MAF

For products that allow fees to be added to the loan, interest is calculated at the product rate. This will not be reflected in

the illustration.

For properties valued over £10m, please refer to Halifax for fee.

Lender Conveyancing Fee - £161.27 Payable on completion. A non refundable legal fee to your conveyancer for work

carried out on our behalf payable before the mortgage completes. The figure is an estimate and does not cover work

done on your behalf or fees paid to others such as search fees. A deeds despatch fee which is currently £50 is payable

whenever the deeds are despatched.

Acceptable Property Types

Freehold Flat No

Purpose Built Flat Yes

Converted Flat Yes

Flat Over Shop Refer

Maisonette Yes

Studio Flat Yes

Flying Freehold Yes

Thatched Refer

Timber Framed Yes

Concrete Refer

Agricultural Tie Refer

Flat Over 4 Storeys Yes

Listed Building Yes

Right to Buy

Max Discount% 100

Max Market Value% 95

New Build acceptable. Maximum LTV on new build properties (houses and flats) is 85% (75% if the scheme type is a

second home loan).

The maximum LTV for Second Homes is 75%.

Builder/Vendor deposit max acceptable 5% of lower purchase price or property value.

Builder Cash Incentives in excess of this figure may result in a reduction in the maximum loan available.

Where existing property is to be rented out- the existing mortgage debt may be disregarded providing the rental income

covers at least 125% of the annual interest charged on the existing mortgage debt at the Halifax Standard Variable Rate.

The property letting should be managed by an ARLA agent or HEAL who must confirm there is sustainable rental market

for this type of property. If the letting is not being done through ARLA/HEAL the case must be referred to Halifax for a

decision whether to proceed. Please refer to lender for further details.

The maximum LTV for Second Homes is 75%.

Timber framed properties are acceptable at the discretion of the valuer and based on their individual merits.

Scottish Single Survey accepted providing valuer is in on our panel and it is less than 3 months old.

Accepted Locations : England, Scotland, Wales, N Ireland

Requirements

Bank Statements No

At Least 3 Months Pay Slips Yes

P60 Yes

Proof Of Residency Yes

Life Policy To Be Assigned No

Previous Lender References No

Insurance

Buildings Conditional

Conditions

Min Loan £25,000

Max Loan £1,000,000

Max Portfolio of BTL Loans none

Min Age 18 years

Max Age 80 years

Min Term 1 years

Max Term 40 years

The maximum age at the end of the mortgage term is 80 years for all lending. The term must end before your client’s

80th birthday.

The term for Interest Only mortgages must finish before customers age of 70 years. For pension and bonus repayment

plan types the existing rules that would restrict the term further based on a lower anticipated retirement age continue to

apply.

Future retirement income will need to be verified where the client is taking a mortgage term which extends beyond the

pension/retirement age (based on date of birth), or their anticipated retirement age, whichever is the earliest. Affordability

will be assessed on the future retirement income. On occasions, a further review will be required to confirm if the lender

feels it is appropriate for the client to lend into retirement. Refer to lenders web site for further information.

Minimum trading period for self employed is 1 year and a projection.

The policy relating to the Mortgage Products of existing borrowers moving home has been changed. Customers on

annual interest rate products with early repayment charges will now have several options on their existing products: 1)

Port the product on an annual interest basis and top up with one of the annual interest products from the current range;

or 2) Change the interest calculation method to daily interest and top up with one of the daily interest products from the

current range; or 3) If their product has finished, but they are still within a tie in period, they can choose entirely from the

new product range and the early repayment charges will be waived; or 4) Pay the early repayment charges and choose

entirely from the new product range.

Customers on a daily interest product can port that product over, and top up with a daily interest product from the current

range. This is not an exhaustive list of scenarios. Speak to your Intermediary Sales Manager with any queries.

Halifax does not lend in Jersey.

Interest Only - All loans arranged where the capital element is not included in the monthly payment must have a plan in

place to repay the capital by the end of the term. This must be reasonable for the customers' circumstances. You must

tell Halifax what the customers' intentions are.

INTEREST ONLY - Maximum LTV on interest only loans is 75%.

A mix of interest only and repayment is allowed but the total borrowing must be less than 75% LTV.

For house purchase and remortgage where the total LTV is over 75% all borrowing must be on a repayment basis.

Customers taking out a loan above 75% at application stage cannot transfer from repayment to interest only, within the

first 12 months of completion of the mortgage.

Minimum joint/sole income of £50,000 required if the customers repayment vehicle is; endowment, investments (see

website for details), pension, sale of 2nd property.

The other repayment vehicles (bonus, cash, sale of mortgaged property) have a minimum income of £100,000 sole and

£150,000 joint.

Minimum equity where Sale of Mortgaged Property is the repayment vehicle is £300,000.

Foreign Citizens Refer

Ex-Patriates Not Accepted

Income

Based on Income > 0

4.49 + 0 or 4.49 joint

Based on Income > 25000

4.75 + 0 or 4.75 joint

Based on Income > 50000

5 + 0 or 5 joint

Min months in current position none

Min months in continuous service none

Min no. of years accounts 1

Average years taken to calculate income 1

Will consider declining profit Refer

Outgoings

Employed:

An employer reference must only be used where the customer cannot provide bank statements or payslips or where

there are discrepancies that need to be confirmed.

Please see lender's website for income verification requirements.

Lending based on affordability - please see www.halifax-intermediaries.co.uk for affordability calculator.

Contract Workers:

Yes to Fixed / Short / Agency / Probationary Contracts.

12 months or more continuous employment with their current employer, with 6 months of the contract remaining or

2 years continuous service in the same type of employment

Where a copy of a contract is accepted as income verification the annual gross income will now be calculated based on

46 working weeks rather than 48 weeks previously. This change is being made to better reflect likely contractor working

patterns and to ensure we continue to lend responsibility to customers with this type of income.

For IT contractors on any income and other contractors whose income is more than £500 per day or £75,000 per annum,

whether employed or self employed, we accept the gross value of the contract as evidence of income. The income to be

keyed should be calculated from the contract as hourly rate x 7 hours x 5 days x 46 weeks (or daily rate x 5 days x 46

weeks). If the contract states a lower number of hours/days is to be worked this should be used instead.

There are no changes to our income verification requirements and in addition to a copy of the contract the latest payslip

or

personal/business bank statement showing the salary credit is also required.

Foreign currency income will not be accepted for new mortgage or remortgage applications for new customers. Foreign

currency income is acceptable for existing Halifax customers moving home, including product porting.

100% of shift allowance income acceptable.

Hire Purchase Taken into account

Personal Loans Taken into account

Overdraft Refer to lender

Credit/Store Cards Taken into account

Child Maintenance Taken into account

Child Education Taken into account

Extra Income:-

Other Income - Guaranteed Add 30% to income before multiply

Other Income - Regular Add 30% to income before multiply

Other Income - Irregular No

Investment Income No

Mortgage Subsidy Add 60% to income before multiply

Large Town Allowance Add 60% to income before multiply

Maintenance Payments Add 60% to income before multiply

Non Contributory Pension Add 60% to income before multiply

Car Allowance Add 100% to income before multiply

Remortgage Max LTV Max% increase

Remortgage Not Available

Adverse Credit

CCJs : Refer to lender

Defaults : Refer to lender

Arrears : Refer to lender

Bankrupt : Acceptable, min months Discharged 72

Current IVA : Refer to lender

Repossession : Acceptable, At least 72 months ago

- The Lender will judge customers with previous or existing adverse credit in a flexible manner and every case will be

judged on its individual merits, along with the customer's ability to keep up repayments on the mortgage, taking into

account his/her existing liabilities.

- The Lender will consider cases of financial difficulty and mortgage arrears sympathetically.

- The Lender follows the general principles of the Council of Mortgage Lenders' Statement of Practice on Handling

Arrears and Possessions, including :

a) with your co-operation, developing a plan with you for dealing with your financial difficulties and clearing the arrears,

consistent with both your interests and those of the Lender.

b) possession of your property will be sought only as a last resort when attempts to reach alternative arrangements with

you have been unsuccessful.

CCJ’s/Defaults:

The date the adverse was registered against the customer determines whether it needs to be recorded on MSP or not.

Any CCJ’s/Defaults registered within the last 6 years (regardless of whether they are still outstanding or repaid) need to

be recorded.

Arrears:

Mortgage arrears of one month or more within the last 6 years need to be recorded.

Arrears for any other debt, e.g. catalogue/store card/loan/HP, of two months or more within the last 6 years need to be

recorded.

A missed payment on a mobile phone account for example is not classed as arrears (as it does not exceed 2 months).

Bankruptcy/IVA/Debt Management Arrangement/Repossession:

If a customer has ever entered into one of the above arrangements within the last six years they must be recorded.

If the customer has ever had a property repossessed it must be recorded regardless of when the event was registered,

as must a bankruptcy restriction order if it is still outstanding