Reviewed: Halifax Mortgages | moneyfacts.co.uk

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Published: 01/02/2022

As one of the biggest mortgage lenders in the UK, Halifax has probably come up in your search for a new mortgage deal. But what can you expect from Halifax mortgages? Here’s the lowdown on everything you need to know.

What mortgages does Halifax offer?

Halifax offers a range of mortgages to suit a number of different buyer profiles, including first-time buyers, remortgagers and home-movers, as well as those with more specialist needs such as landlords. The lender purely offers fixed rate mortgages at present, with initial terms ranging from two to 10 years, at a loan-to-value (LTV) of between 60% and 95%.

 

What are the rates like?

This will depend on a range of factors such as your LTV, income, credit score, the amount you’re looking to borrow and the kind of mortgage you’re after, but it’s probably fair to say that Halifax rarely offers the cheapest deals on the market, though there may be other perks involved that enhance the offer.

 

It’s vital to do your own research, and bear in mind too that Halifax may be able to offer different deals to those going via an intermediary, or for existing customers, so it may be worth speaking to a broker who’ll be able to help you track down the very best mortgage rates.

How much can I borrow?

Your income and credit score will comprise a key part of this answer, and it’s different for everyone. You’ll have to go through a substantial affordability assessment to get an accurate idea of how much you could borrow, though Halifax has several mortgage calculators on its website to give you a rough figure. Looking purely at LTV, Halifax will lend at up to 95% LTV for first-time buyers and home-movers, and up to 90% LTV for remortgagers.

Is it hard to get a Halifax mortgage?

As with all mortgages, it’s easier to be approved if you’ve got a great credit history. That said, a less-than-perfect rating doesn’t necessarily rule you out, with Halifax sometimes able to accommodate those who have had credit issues in the past. It’s important to speak to the lender directly if you think you’ll fall into this category, and make sure to focus on raising your credit score as much as possible before making an application.  

How do I apply for Halifax mortgages?

The first thing to do is get your documents together – this will include your ID, proof of income and bank statements to show your outgoings – and from there you can get an agreement in principle. This is a no-obligation indication of the amount you could borrow that includes a soft search being performed on your credit report, and isn’t a definitive mortgage offer.

 

After you’ve found your ideal property you can then make a full application, ideally after speaking to a mortgage adviser. Halifax will then run a full affordability assessment and will arrange a valuation of your property, and if all goes to plan, they’ll make a mortgage offer which will be valid for six months.

How long will the application process take?

This will depend on the complexity of your application and whether there are any bumps along the way, but Halifax says that it can typically take anything from one to six weeks for an application to be approved (or rejected, as the case may be).

 

This is because the process of overlooking your finances and arranging a valuation can take several weeks, and there’s the case load of both the lender and surveyors to consider as well. Make sure to check in with Halifax if you want to be kept up to speed with the progress of your application.

I’ve got my mortgage. Can I make overpayments?

Yes. You’ll be able to arrange both lump sum and regular overpayments, with Halifax typically allowing borrowers to overpay by 10% of the outstanding mortgage balance each year (this will be based on the amount owed on 1 January of the year in which you wish to overpay). You can pay off more than 10%, but you’ll be hit with an Early Repayment Charge for doing so (this will only be levied against the amount above 10%). You can easily arrange overpayments by logging into your Online Banking.

 

You can also apply for a payment holiday. You’ll have to meet a lot of strict criteria for this to be an option – for example, you’ll need to have held the mortgage for at least 12 months, won’t have taken any additional borrowing in the past six months and your current mortgage balance will need to be less than 75% LTV – but if your circumstances have changed and you need a short-term payment break, they may be able to accommodate. Underpayments may also be a possibility.

Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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