Halifax offering more generous mortgages to borrowers when they take a five-year fix
Halifax for Intermediaries has improved its mortgage criteria so some borrowers will not need to put in such a large deposit to qualify for a more generous loan.
The bank has increased the qualifying loan-to-value so borrowers will need a 10% deposit rather than a 25% deposit to qualify for an enhanced maximum loan amount. This is available to borrowers who select a five-year+ fixed-rate mortgage product.
The move is designed to expand the number of purchase or remortgage customers who can benefit.
How much will Halifax lend if mortgage applicants earn between £50,000-£75,000?
For employed borrowers with incomes between £50,000-£75,000 and a deposit between 25% and 15%, the standard loan-to-income is being increased from 4.75x to 5.00x salary.
How much will Halifax lend remortgage borrowers when they take a five-year fix?
For like-for-like remortgage borrowers who do not want to raise additional funds, provided they are employed rather than self-employed, it is possible to borrow up to 5.5 times single or joint salaries providing borrowers have 25% equity in their property.
Aaron Strutt, product director at Trinity Financial, says: "Many borrowers are struggling to borrow the amount they need to purchase the properties they want.
"Some lenders offer borrowers larger mortgages when they take five-year fixes, providing they have a clear credit history. Others lend more money to professionals like doctors, dentists and lawyers, also those earning over £75,000 a year."
Halifax says these affordability changes will help the bank support even more financially resilient customers with improved affordability outcomes.
For Halifax's five-year+ fixed rate enhancement to apply, the whole loan amount must be on a five-year+ fixed rate. For part interest-only and part capital-repayment mortgages, the old income multiples will apply. The bank also says not all customers will see an enhanced maximum loan with a five-year fix because their loan-to-income cap applies.
Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation
The information contained within was correct at the time of publication but is subject to change.
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