This section offers you an overview of our lending criteria. Whilst we aim to cover all relevant information, this criteria does not detail all our requirements and for anything you are unable to find, contact your BDM.
- Acceptable reason for a further advance
Further advance & product transfer -
It is important that the purpose of capital raising should be investigated. A secure e-mail detailing the exact reason for the capital raising must be sent to the local processing centre with the heading ‘Please pass to BA’. Documentary evidence is only required where total lending is more than 75%. Where total lending is less than 75% and the credit score pass is A or B, the restrictions below do not apply.
The list of acceptable reasons on the system are:
- Business purpose (restriction - not for injection of capital)
- Consumer goods (restriction - not for holidays)
- Debt consolidation
- Gift to relative
- Home improvements (shared ownership included)
- Investment purpose (restriction - not for currency speculation)
- Purchase freehold - (conveyancer required)
- Purchase additional land adjacent to property (conveyancer required)
- Purchase extension to lease - (conveyancer required)
- Purchase additional share (shared ownership)
- Repay subsequent charge (refer to subsequent charge section before proceeding)
- Repairs
- Second home loan (restriction - not for purchase of a time share)
N.B. These circumstances have some important restrictions:
- Right-to-buy - home improvements only if within first 2 years of the discounted period
- Purchase of a second home (see Lending Limits)
- Second homes - Home Improvements only
- Affordable housing
Supporting a wide range of schemes -
There are a number of Government backed affordable housing schemes where we provide mortgage finance.
There are several types of schemes that we'll provide mortgages for. The vast majority are shared equity (Registered Social Landlord (RSL) and private builder schemes) and shared ownership (RSL only). We also provide lending on other types of affordable housing schemes including those that are subject to key worker or other types of resale restriction.
The area of the site provides information and guidance on Government initiatives and our approach to lending.
Shared equity
Let's your client buy a home by sharing the equity with a third party.
Halifax must have first charge, the seller secures their interest by way of a second charge. We can lend up to 95% of the purchase share - clients must contribute a minimum 5% personal deposit (excludes any deposit provided by a Builder or Housing Association).
The mortgage must be conducted on a full repayment basis.
The facility to transfer the mortgage to full or part interest only is not available whilst the mortgage is conducted on a Shared Equity or Shared Ownership basis.
Shared ownership
A staged purchase scheme for house buyers in England
Maximum 90% of share, subject to mortgage protection clause or section 442 agreement; maximum 75% if no clause/agreement. Minimum share – 25%. Conveyancer to confirm acceptability. Verbal confirmation is required from Housing Association confirming if mortgage protection clause in lease.
The mortgage must be conducted on a full repayment basis.
The facility to transfer the mortgage to full or part interest only is not available whilst the mortgage is conducted on a Shared Equity or Shared Ownership basis.
- Agreement in principle (A.I.P.)
Mortgages -
Please see notes on mortgage promise.
- Arrears
Further advance & product transfer -
Where the mortgage has been at least one month in arrears within the last 3 months, a further advance application cannot be accepted. The client should be advised to bring their account up to date and be ‘arrears free’ for at least 3 months before re-applying.
This rule also applies to any stand alone product transfers that you may wish to process, however, you can process the product transfer as soon as the account is up to date with no requirement to wait 3 months.
- Arrears
Mortgages -
Applications where previous mortgages have been in arrears will be considered on an individual basis, unless previously taken into possession by a lender.
- Bank statements
Mortgages -
May be used to verify mortgage/rent track record. For C pass cases latest 3 months required. Internet Bank statements are accepted.
- Bankrupts
All products Only if discharged and subject to a credit score.
- Change of debt
Further advance & product transfer -
If, on conversion of an accepted KFI to an application for a product transfer or a further advance, there has been a change in the debt then the application will be referred to the local processing centre.
The local processing centre will take the following action depending on the size of the debt change, whether the change is an increase or a reduction, and whether the product is still valid:
Type of change |
Local processing centre action |
Debt reduction |
Amend amount allocated to highest rated new product. |
Debt increase less than £1,000 |
Amend amount allocated to lowest rated new product. |
Debt increase more than £1,000 |
Contact intermediary, who must advise what action is required. |
If product chosen is no longer valid due to debt change |
Contact intermediary, who must advise what action is required. |
- Change of name
Further advance & product transfer -
Please see the flowchart below in the event of a name change.
- Client verification checks
Mortgages -
By law, we are required to ask for proof of identity for all mortgage applicants. To provide us with this proof for your clients you must have sight of two original documents for each applicant and complete the certification on page 1 of the Halifax Intermediary Mortgage Application Form with details of the evidence you have seen. FSA registered firms retain evidence of verification undertaken on their own files and provide details to us on the application system. However, we do not normally require verification documents to be sent to us.
Acceptable documentation:
To verify your client's identity you must inspect one document from each of the two lists below, for each applicant. Please note that the same document cannot be used for both government issued and supporting documents.
Government issued
Any one of the following original forms of verification is acceptable providing they are current:
- Full signed passport
- Current UK (old paper style) full driving licence (old style provisional is not accepted)
- Current UK or EEA photo card driving licence (full or provisional)
- Shotgun or firearms certificate
- HM Revenue and Customs construction industry registration card or certificate (CIS4, CIS5 or CIS6)
- Benefits book or original notification letter confirming your rights to benefits or state pension
- HM Revenue tax assessment or statement, but please note P2, P45 and P60 forms are not acceptable
- Residence Permit (issued by Home Office to EU nationals)
- EEA member state identity card
- Blue disabled driver's pass
- Northern Ireland electoral identity card
- Local authority tax bill
- Local council rent card or tenancy agreement
Supporting Documents
Any one of the following original forms of verification is acceptable providing they are current:
- UK (paper style) full driving licence (old style provisional is not accepted)
- UK or EEA Photo Card driving licence (full or provisional)
- Recent systems-generated or signed documentation from a financial services sector firm indicating that the account/ investment/insurance relationship exists and which contains the customer's address
- Local authority tax bill
- Local council rent card or tenancy agreement
- Recent utility bill, utility statement or certificate from a supplier of utilities confirming arrangement to pay for the services on pre-payment terms (includes landline telephone/landline cable company bills, but excludes all mobile telephone bills)
- Benefit book or original notification letter confirming your rights to benefits or state pension
- EEA or UK national identity card
- Northern Ireland electoral identity card
- HM Revenue tax assessment or statement, but please note P2, P45 and P60 forms are not acceptable.
- Housing Association rent card or tenancy agreement
- Student matriculation photo identity card
Certifying a document
We do not require you to endorse photocopied or faxed documents as true originals before submission.
Documents for Anti-Money Laundering requirements e.g. proof of name and address do not normally need to be sent to us. However you need to retain evidence of these documents in your own files. If we ask you to supply us with Anti-Money Laundering documents these will need to be endorsed in accordance with the following procedure:
- Photocopy the document
- Write on photocopy 'Certified copy of original'
- Where document contains a photograph, check it is a good likeness of the customer and write 'Good likeness to person'
- Sign the photocopy and print underneath your signature: Intermediary name/company/firm (or company stamp), the date.
- Client Verification Checks
Further advance & product transfer -
Name verification is required only.
Any one of the following original forms of verification is acceptable providing they are current:
Primary Verification
- Personal Allowance Book
- Passport
- Driving Licence
- Home Office EU Residency Permit
- Firearms Certificate
- HM Revenue & Customs Tax Notification
- Benefit Allowance Confirmation Letter
- Building Industry HM Revenue & Customs Sub Contractor's Certificate.
Secondary Verification enables Secondary Verification drop down:
- Credit Card
- Cheque Guarantee Card
- Employers ID
- National ID Card
- National Student Union Card
- Collection of initial interest
Mortgages -
Collection of the initial interest takes place a minimum of 14 days after completion. The customer can request a change to their due date once the initial interest has been paid. If completion date is before the 10th of the month, then initial interest will be collected 14 days after the completion date. If the completion date is on the 10th or after, then the initial interest and first monthly payment will be collected together on the first of the following month or 14 days from completion, whichever is the later. In both circumstances the subsequent monthly payment will be due the 1st of the month.
For example:
Completion date |
Initial interest |
Mortgage payment due |
8/8/2000 |
22/8/2000 |
1/9/2000, and on the 1st of each month thereafter |
13/8/2000 |
& first mortgage payment |
1/10/2000, and on the 1st of each month 1/9/2000 thereafter |
25/8/2000 |
& first mortgage payment |
1/10/2000, and on the 1st of each month 8/9/2000 thereafter |
- Consent to lease (CTL)
All products -
Further advance & product transfer
The intermediary should establish, preferably prior to keying the application for further advance and product transfer, whether the property on the account is the customer's main residence. If the customer now resides in the property, then the application can be processed following a call to ISC. If the customer is still letting the property, due to our policy rules, the request cannot be processed unless the customer is a HM forces employee - regardless of whether the HM forces employee is still letting the property or not, the application can be processed following a call to ISC.
- County Court Judgements (CCJ's)
Mortgages -
Generally taken into account in credit scoring however background details are required.
- Credit scoring
Further advance & product transfer -
All applications will be credit scored. If an application fails it is unlikely to be successful on appeal. If however, you feel it would improve the Halifax’s and the client’s position, then this can be referred in the usual way through your local processing centre using the ‘Contact Us’ button.
- Customer & guarantor confirmation document
All products -
This is issued to the customer/guarantor to confirm the terms under which we will assess their mortgage application. There is no requirement for the customer/guarantor to sign and return a declaration form.
- Deductions
Mortgages - Credit commitments with over 3 months to run, shared ownership rent and maintenance payments.
- Direct debit details
All products -
The details of the customer's bank account from where the mortgage will be paid should be keyed directly via Halifax Intermediaries Online. There is no requirement to complete a direct debit mandate form, but details must be provided before the offer will be issued.
- Distressed sales & leaseback
Mortgages -
Applications that involve a distressed sale or a sale and leaseback are not acceptable.
- Early repayment charges
Mortgages -
Some of our products have early repayment charges attached to them. An early repayment charge will apply if your client takes a product transfer or repays some or all of their mortgage during the early repayment charge period. If your client chooses a mortgage product with early repayment charges, as a concession, in any period of 12 months, your client 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.
- Employment contracts
Mortgages -
Agency workers
This is not normally considered, however, exception may be possible if evidence of 18 months continuous employment through agencies/similar employment can be proved. 18 months employment references required.
IT contractors
For all IT contractors whether employed, self-employed or utilising an umbrella company, we will accept the gross value of the contract as evidence of income. For information on term of employment follow sub contractor rules.
Piecework
Letter required from the employer confirming a contract of employment exists and piecework earnings are sustainable.
Probation
A passes below 85% LTV - nothing required.
All B & C passes - if client is on probation, intermediary to obtain written confirmation from employer that job is permanent and end date of probation period.
Short term, renewable, fixed and rolling contracts
These can be considered. 2 years remaining on contract proceed without referral, if less refer to intermediary sales centre.
Sub-contractors
Applicants must have been sub-contracting for a minimum of 1 year or employed in a similar business. If they sub-contract for 1 company & are not responsible for paying their own tax, treat as employed. If they are responsible for paying their own tax and/or subcontract for more than 1 company, treat as self employed.
- Employment history
Mortgages -
Generally, 18 months history collected if client has had more than 3 jobs in last 18 months or self employed 3 years history is required.
- Existing borrowers
Mortgages -
If any one of the clients is an existing borrower, both clients are treated as existing borrowers.
- Existing mortgages
Mortgages -
Generally to be repaid on completion of new mortgage. Where requested, non-simultaneous sale and purchase may be considered – see non-simultaneous sale and purchase for more details.
- Expatriates
All products -
Mortgages
Maximum lending 75% LTV. Product fee £100. Intention must be to occupy within 4 years. Consent to lease can be granted for first 3 years. Maximum loan amount £2m. Cannot be used to capital raise.
- Family business
Mortgages -
Confirmation of income required from unrelated third party, i.e. inland revenue tax assessments (preferred) or company accountant.
- Finders fees
Mortgages -
Applications involving finders fees are not acceptable. A finders fee is a fee or commission paid by a seller to a third party (such as an investment club) for finding or introducing a buyer. It does not include the normal fee or commission payable to any estate agent handling the sale.
- First time buyers (FTB)
Mortgages -
To qualify for a FTB product, one applicant must not have previously bought or owned a property (including inherited/bought for cash).
- Foreign nationals
Mortgages -
- Passport required to verify right to live and work in UK for all applicants except EEA nationals.
- Applicants must not enjoy diplomatic immunity
- LTV below 75% and personal deposit 25% - proceed.
If not and client is a non EEA National... (EEA Nationals include citizens from the following Countries: Austria, Belgium, Cyprus (Greek Cypriot only), Denmark, Finland, France, Germany, Greece, Iceland, Eire, Italy, Liechtenstein, Luxembourg, Malta, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland.)
- Passport includes indefinite leave to remain - proceed
- Passport does not include indefinite leave to remain but includes work permit or visa with minimum 2 years 6 months to run - proceed
- Please ensure that if the passport has a visa stamp and if this stamp has specific conditions attached that any documents that refer to these conditions are submitted with the passport, i.e. if the visa says ‘As authorised by the secretary of state’ then the work permit and a letter from the employer confirming that they have applied (or intend to apply) for the permit to be renewed are submitted
- If not, where work permit has less than 2 years 6 months employer must confirm that they have applied (or intend to apply) for the permit to be renewed - or
- Where UK ancestry visa, applicant must be in minimum of 4th year of continuous employment in UK (any number of employers). Evidence of continuous employment required - proceed
- Some Non-EEA nationals may have an identity card issued by the home office in place of a visa, which will confirm the customer's right to stay, work or study in the UK. These cards are acceptable.
- If none of the above apply the case can not proceed.
Citizens from Czech republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia & Slovenia, who entered the Country prior to 1st May 2004 are treated as all other foreign nationals as above. Any citizen who entered after 1st May 2004, maximum LTV is restricted to 75%.
Refugees
Refugees/asylum seekers must have indefinite leave to remain, which must be verified by the documentation from the immigration & nationality directorate. This will consist of a letter confirming that they have been granted "Indefinite leave to remain". "Exceptional leave to remain" is not acceptable.
Spouse/Partner of UK National
Income can be used once they have been granted permanent residency.
- FSA regulation: consolidation to satisfy FSA regulation
Further advance & product transfer -
Where a firm makes a personal recommendation to a client to enter into a regulated mortgage contract where a main purpose* is to consolidate existing debts, the following must also be taken into account where relevant, in assessing whether the regulated mortgage contract is suitable for your client:
- The costs associated with increasing the period over which a debt is to be repaid;
- Whether it is appropriate for the client to secure a previously unsecured loan; and
- Where the client is known to have payment difficulties, whether it would be more appropriate for the client to negotiate an arrangement with his creditors rather than to take out a regulated mortgage contract.
- Further advance fees
Further advance & product transfer -
There is a set arrangement fee for further advances which is currently £99. This fee is payable on all occasions and can be added to the loan.
- General
Mortgages -
Your client must be 18 or over and give us a mortgage over their property. We will take into account your client’s personal and financial circumstances and the value or price of their property. These and the product they choose will affect how much cashback/contribution towards moving costs they may get and what if any higher lending charge, product fee and early repayment charge they have to pay.
- General insurance
Further advance & product transfer -
Home insurance (buildings and contents)
New lending for home improvement reasons may result in your client’s existing cover being insufficient. If required, your client should contact their insurance provider.
- General insurance
Mortgages -
Products offered
Halifax offers comprehensive buildings & contents insurance cover on a mortgage related and standalone basis.
How to apply
Applications for Halifax Home Insurance Cover on behalf of clients can be made through www.halifax-intermediaries.co.uk.
There is a new online application system for general insurance that is straightforward and efficient it will take around 5 minutes to complete an application.
Commission payments
- When self-serving using the website to apply, commission is earned on each policy sold and every year when the client renews their policy
Compliance
When applying online the following FSA documentation is produced:
- Keyfacts Policy Summary
- Demands & Needs.
Product information
Halifax Home Insurance provides your client with:
- Unlimited cover for buildings
- Flexible cover
- A dedicated claims service
- Guarantor mortgages
Mortgages -
Considered in certain instances. Direct relative (must be UK resident) who can support the whole loan and existing loan and credit commitments. The existing loan and credit commitments belong to the guarantor. Maximum one guarantor. No income stretches allowed. In most cases the applicant would be expected to be able to afford the mortgage payment on his/her own within a reasonable period - normally 3 or 4 years.
- Halifax Standard Variable Rate
Mortgages -
This is the variable base rate that we charge on most of our mortgage accounts. It is currently used as a reversionary rate, it is not available for selection for new applications, further advances and product transfers. It will vary in relation to market conditions. We have set a limit on Halifax Standard Variable Rate so that it will not be more than 3% above the Bank of England repo rate, usually known as the Bank of England base rate. We can change the 3% limit but, before we do, we will give 30 days' notice to customers who pay interest at Halifax Standard Variable Rate, a discounted rate or an added rate and are subject to an Early Repayment Charge.
Those customers will then have three months to repay their mortgage, if they want to, without having to pay the Early Repayment Charge. This does not apply to customers who pay interest at a fixed, capped or tracker rate.
- Higher lending charge (HLC)
Mortgages -
Is required to cover the excess loan over 75% up to 95%. If your client pays a deposit of at least 10% of the valuation, Halifax will pay the HLC fee. This offer can be withdrawn without notice. For loans over 90% up to 95% LTV the fee is calculated at 7.25% on any amount above 75%. The fee may be added to the loan but interest will be charged on it at the stand variable rate (SVR).
Note - fees to be added to the loan will be included in the affordability calculation.
- HomeBuy scheme
Mortgages -
See shared equity schemes.
- Income
Further advance & product transfer -
Typically the following allowances are taken into consideration when assessing income:
- 100% of additional duty hours, mortgage subsidy, town, area and car allowance, retirement income, working tax credit.
- 50% of maintenance payments, disability living allowance.
- 100% of basic salary can be used where the applicant is employed on a permanent contract. Acceptance of fixed term, short term, probationary or piecework contracts are subject to track record/length of contract remaining. Income from seasonal or temporary contracts cannot be used.
- 60% of overtime, bonus, commission bank nursing and shift allowances. (A business assessor can use discretion to consider up to 100% dependent on track record.)
When calculating affordability on interest only loans, Halifax will take into account the monthly premiums payable for the relevant repayment vehicle, i.e. existing endowment, new or existing ISA. Please ensure the premium(s) is specified at application.
All applications are subject to satisfactory status checks including credit scoring. If your client does not keep to the mortgage conditions, we may off set any money that they owe us against a credit balance in any account they hold with us, including a joint account (same as a mortgage application).
- Income
Mortgages -
Typically the following allowances are taken into consideration when assessing income:
- 100% of additional duty hours, mortgage subsidy, town, area and car allowance, retirement income, working tax credit
- 50% of maintenance payments, bank nursing, disability living allowance
- 100% of basic salary can be used where the applicant is employed on either a fixed term, short term, probationary or piecework contract. Income from seasonal or temporary contracts cannot be used
- 60% of overtime, bonus, commission & shift allowances (100% of overtime, bonus & commission if guaranteed at the sale centre’s discretion).
When calculating affordability on interest only loans, Halifax will take into account the monthly premiums payable for the relevant repayment vehicle i.e. existing endowment or new or existing ISA. Please ensure the premium(s) is specified at both AIP and full application.
All applications are subject to satisfactory status checks including credit scoring. If your client does not keep to the mortgage conditions we may set off any money that they owe us against a credit balance in any account they hold with us, including a joint account.
The following table provides details of the documents we need to verify income.
Employment type |
Pass score |
Income confirmation requirements |
Employed |
Pass A up to 85% LTV |
*Income confirmation is not usually required |
Pass A more than 85% LTV and all Pass B |
Either, latest monthly payslip or latest 2 weekly payslips or if bonus/overtime/commission is being used, latest payslip plus P60 which confirm current levels of pay |
All Pass C |
In all instances the following are required:
3 months personal bank statements plus either, latest monthly payslip or latest 2 weekly pay slips or if bonus/overtime/commission is being used, latest payslip plus P60 which confirm current levels of pay |
All cases (Pass A, B & C) of more than £500,000 |
Referred for underwriting and income confirmation will be determined and requested as required |
Self Employed |
Pass A up to 65% LTV |
*Income confirmation is not usually required |
Pass A more than 65% LTV and all Pass B |
Last 3 years tax assessments or letter from accountant confirming income |
All Pass C |
3 months personal bank statements and 3 months business bank statements plus last 3 years tax assessments or letter from accountant confirming income or Accounts. |
All cases (Pass A, B & C) of more the £500,000 |
Referred for underwriting and income confirmation will be determined and requested as required |
*We reserve the right to request income verification in all cases
- Income multiples
Mortgages -
Halifax use affordability as a way of assessing how much they will lend. Please refer to our affordability calculator.
- Income multiples
Further advance & product transfer -
Halifax use affordability as a way of assessing how much they will lend.
- Interest only
Mortgages -
- Maximum LTV on interest only loans is 85%
- A mix of interest only and repayment is allowed but the total borrowing must be less than 85%LTV
- For house purchase and remortgage where the total LTV is over 85% all borrowing must be on a repayment basis
- Customers taking out a loan above 85% at application stage cannot transfer from repayment to interest only, within the first 12 months of completion of the mortgage
- New build and Further Advance applications are subject to a limit of 80% LTV for interest only and repayment.
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 us what the customers' intentions are.
- International mortgage payments
Secure electronic transfers to any country Two million Britons have invested in properties abroad or purchased holiday homes, and a further two million people plan to buy in the next few years. Your client may be interested in overseas property purchase and the subsequent mortgage payments or simply want to send money overseas for an investment.
Whatever their payment needs you can offer them a low cost electronic payment service that is quick and secure with Halifax International Payment Services. We can fly any amount to any destination within just 1-2* bank working days.
International payments are the most reliable and secure way to transfer money from your clients account to another account anywhere in the world in a wide range of currencies
International payments can be arranged via the branch and telephone banking or through our new online service. (Clients must be registered for telephone and online banking. Please note clients need to have a bank account to transact online).
The service provides:
- A secure and professional service
- Competitive exchange rates - live rates that are updated continuously
- Global currency coverage – rates for currencies around the world
- No paper forms, no fuss - details are processed immediately
- BIC and IBAN checking facility to minimise errors that could cause delays
- Regular transfers made easy - details are saved so repeat payments are even easier
Send any amount to any destination and pay £19.50 via branch or telephone banking and just £9.50 via online banking. Please note that other banks involved in the transaction may apply their own charges.
The ideal solution if your client needs to make a regular transfer overseas for mortgage payments.
If your client has a Halifax or Bank of Scotland banking or savings account all they need is the following information:
- Euro payments: beneficiary name, BIC and IBAN required.
- Rest of the world: full account number, beneficiary name and bank details.
The person sending the payment must take care to quote the correct numbers, otherwise payment could be delayed, returned or be paid to the wrong account. We will not be responsible for any loss that results.
Your client can contact our customer services team on 0845 20 30 40 and secure an exclusive deal with Halifax Intermediaries; a reduced fee of £15† per payment, just by quoting RED10.
If your client has an account with Banco Halifax Hispania they can benefit from free transfers between Halifax or Bank of Scotland banking or savings accounts.
*The transfer is usually in the beneficiary's country within 1-2 bank working days subject to local banking practices and time zone differences. In order to qualify for the free transfer to and from Banco Halifax Hispania accounts the sender name and beneficiary name must be identical.
†Halifax International Payment Services is working closely with Halifax Intermediaries to offer this exclusive deal to your clients on a trial basis. There is currently no procurement fee payable to you. We reserve the right to withdraw the exclusive offer at any time.
Calls from BT landlines to 0845 numbers will cost no more than 2p a minute plus a 8p connection fee. The price of calls through other companies and from mobile phones will be different. The call price we have quoted was correct in January 2009.
Other banks involved in the transaction may apply charges. Information correct at date of printing, February 2008. The person sending the payment must take care to quote the correct numbers, otherwise payment could be delayed, returned or be paid to the wrong account. We will not be responsible for any loss that results. Halifax is a division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ.
- Key facts illustration (KFI)
Mortgages -
The customer must have received a Key Facts Illustration before the application is submitted.
- Leasehold properties
Mortgages - Acceptable subject to 70 years remaining on the lease from the date of application.
- Lending into retirement
Raising capital in retirement with an interest only mortgage -
The Halifax Retirement Home Plan is an interest only mortgage for retired people, which allows them to borrow up to 75% of the value of their property.
They can use the raised capital for almost any purpose including new home purchase, home improvements and holiday home purchase.
How it works
This is a lifetime mortgage where the mortgage balance never decreases. It must be repaid at the end of the mortgage term or when the property is sold, if this is earlier. Once the mortgage is repaid, any surplus sale proceeds belong to your client or their estate.
To make sure your clients understand the features and risks, you must provide them with a personalised illustration.
Client already has a mortgage?
If your client already has a mortgage with any lender, they can transfer it to Halifax Retirement Home Plan, and take advantage of a lower, interest only, monthly payment.
Monthly repayments
Your clients need enough income to meet their monthly repayments and other associated home ownership costs.
If they haven't already retired, they'll have to continue to pay the monthly repayment once they retire when their monthly income may reduce.
To use retirement home plan for home purchase or home improvements, DWP (Department for Work and Pensions) benefits may be suitable income.
Terms
- Minimum age: applicants must normally be age 65 or over
- Maximum term: 40 years
- Maximum loan: 75% of property value. Other restrictions may apply depending on the product selected
- Basis: single or joint life, fixed or variable rate interest only mortgage
- Interest rates: rates will depend on the individual circumstances of the applicant
More information
Contact your business development manager for further information on how the scheme works.
- Lending limits
Mortgages -
Property value |
Basic limit |
Maximum HLC |
Maximum loan* |
Up to £555,555 |
75% |
15% |
90% |
£555,556 - £588,235 |
75% |
Sliding scale 15% to 10% |
£500,000 |
£588,236 to £2,000,000 |
75% |
10% |
85% |
£2,000,001 - £2,266,665 |
75% |
Sliding scale 10% to 0% |
£1,700,000 |
Over £2,266,665 |
75% |
Nil |
75% |
*The maximum loan for remortgages is 90%, Interest Only 85% and New Build 80%. The maximum loan for capital raising is 90%. (Minimum loan if cap raising - £15,000). The maximum loan for Second Home Loans and Expatriate Mortgage Schemes is 75%.
- Lending limits for further advances
Further advance & product transfer -
Valuation |
Basic Limit |
Maximum HLC |
Maximum Loan |
Up to £2,000,000 |
75% |
5% |
80% |
£2,000,0001 - £2,133,333 |
75% |
Sliding Scale 5% to 0% |
£1,600,000 |
Over £2,133,333 |
75% |
nil |
75% |
- Additional lending on a main residency - further advance is permitted up to 75% LTV for business purposes (but not for an injection of capital). This includes buying a property, which is to be rented out. Guidelines are detailed on www.halifax-intermediaries.co.uk and must be followed.
- Additional borrowing taking the mortgage debt above 75% is permitted to purchase a second property, which is not to be rented out. This is, however, on the understanding that the Halifax’s normal lending limits are not exceeded.
- Additional lending limits on properties other than a main residency - This is allowed to carry out improvements to the property on the basis that lending does not exceed 75% LTV.
- Additional borrowing applications will not be permitted within 6 months of completion of the original mortgage.
- Lifetime mortgages
Mortgages -
Please see Retirement Home Plan (RHP).
- Loan to value (LTV)
Mortgages -
This means "loan to value" and is the proportion of the value or price of the property (whichever is the lower), that you borrow on a mortgage.
For example, a £63,000 mortgage on a house valued at £70,000 would be a LTV of 90%.
- Maximum number of applicants
Mortgages -
Four - takes two incomes into account and discretion for the third.
- Maximum term of mortgage
Mortgages -
40 years - repayment, ISA, pension, PEP, endowment and interest only.
- Minimum/maximum age
Mortgages -
Minimum 18 years. Maximum retirement, unless retirement income meets affordability rules.
- Minimum/maximum loan
Mortgages -
No minimum (£15,000 if capital raising) - see ‘lending limits’ for full details of maximum loan.
- Mix and match
Mortgages -
Most of our mortgage products can be combined in one mortgage, with the following exceptions: annual interest products cannot be mixed and matched with daily interest products. Flexible, new build, first time buyer special and CAT standard products cannot be mixed and matched with other products.
- Mortgage account fee
Mortgages -
The fee is to cover the setting up, routine maintenance and closing down of the mortgage account and is part of the overall price paid by the customer for taking out the mortgage. The fee is a fixed amount £245, is interest free for the life of the mortgage.
- Mortgage promise (A.I.P.)
Mortgages -
Our mortgage promise provides a full mortgage credit score facility using minimal information. It states how much we can lend, is valid for three months and is subject to a valuation and the information supplied being correct. This is only available for mortgages in the UK.
- New build
Mortgages An initial occupancy/new build property is classed as any property being occupied and/or sold for the first time on the open market in its current state. These will fall into one of four categories:
- Newly built property.
- Re-furbished property i.e. re-furbishment of an existing residential property, typically a re-furbished property will be considered as initial occupancy where the vendor is a builder/developer and the property has been vacated to allow for the re-furbishment to be undertaken.
- Converted property i.e. conversion of an existing non residential property, e.g. an existing mill converted into flats.
- All lending decisions are based on valuation or purchase price (whichever is lower) apart from New Build which are processed on valuation.
- A property, either new or converted (as above), that has been tenanted through a 'try before you buy' or 'rent before you buy' scheme and is now offered for sale by the builder/developer.
Builder cash incentives
These include but are not limited to deposit contributions, cash-backs, contribution to legal fees/stamp duty, mortgage subsidies. Builder cash incentives will typically be acceptable provided the value of these does not exceed 5% of the lower of purchase price/valuation. Cash incentives in excess of this amount may result in a reduction in the maximum loan available. All builder cash incentives must be declared at the point of sale.
Cash incentives for shared equity applications are acceptable provided the total value of the loan plus incentive together does not exceed 95% of the value of the equity share being purchased.
- Non simultaneous sale and purchase
Mortgages -
This is a concession and not a product. Halifax charges a non simultaneous sale and purchase administration fee, currently £75 (refunded if existing mortgage is redeemed in 3 months). Halifax will currently pay the fee, however this offer may be withdrawn without notice.
The criteria that apply depend on the following different circumstances:
Where existing property is for sale- providing that there is no intention to let the property, (sales particulars required), where the existing mortgage is with another lender, the existing mortgage payment can be deducted as a credit commitment. Where the existing mortgage is with the Halifax, both mortgage debts must be within affordability. Evidence of outstanding mortgage debt will be required in form of mortgage statement.
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.
In addition to the above the following currently apply:
- Income verification (this is required where there is any new let
involved)
- Maximum new loan (to be client's main residence) to value 97%
- Income discretion is not allowed
- The new mortgage must be a credit score pass, i.e. not passed on appeal
- Explanation why case is a non-simultaneous.
Current properties already rented out- evidence is required that these are self-financing, unless credit score pass of A or B & LTV is below 75% or above 75% for existing HBOS
mortgage customers who have held a mortgage account for more than 24 months, when a declaration, by the client, that the mortgages are self-financing is sufficient. Where the case has a credit score pass of C or above 75%, full underwriting is required.
- Overpayments
Mortgages -
Lump sum or regular overpayments can be made at any time. If early repayment charges apply to the product refer to early repayment charges for more details. Please also see section on flexible mortgages.
- Payment holidays
All products -
Mortgages
Payment holidays can be requested providing the account is no more than one month in arrears and is at least three months old. And:
- No payment arrangements have been made in the last six months
- The total outstanding debt does not exceed the maximum lending limit for the type of loan
- No second mortgage or subsequent charge has been registered from another lender
- Your client is not currently claiming on mortgage repayments insurance policies
- Where your client already has a Halifax homeowner loan secured on the property, the projected mortgage debt plus the amount due under the homeowner loan is no more than 95% of our indexed valuation of the property.
Payment holidays only apply to the monthly mortgage payment. Interest is charged during a payment holiday. Insurance, life assurance and mortgage repayments insurance must continue to be paid. At the end of the payment holiday a new monthly payment will be calculated on the total mortgage debt including the suspended payments.
(Please also see section on Flexible Mortgages.)
- Product fees
Mortgages -
Cannot be refunded, however, they can be added to the mortgage on completion, but interest will be charged.
Note - fees to be added to the loan will be included in the affordability calculation.
- Products and offers
Mortgages -
Our products and offers are subject to conditions. We may withdraw them without notice. Most of our products can be carried forward to a new Halifax mortgage.
- Proof of deposit
Mortgages -
At Halifax’s discretion.
- Regulation
Further advance & product transfer -
If an existing mortgage is already FSA Regulated then it will stay FSA regulated regardless of a further advance or product transfer.
If, however, a mortgage is non-FSA regulated and a further advance is required, to give the customer the regulatory protection for the entire mortgage, the existing debt is refinanced to make the whole mortgage FSA Regulated.
Please note that a stand alone product transfer would not make the mortgage regulated.
Further advance combined with a product transfer
Product transfers can only be done at the same time as the further advance if the additional borrowing will mean the whole debt is re-financed. For example, if the existing mortgage is unregulated and the further advance is making it FSA Regulated.
If the existing mortgage is already FSA regulated then the product transfer must be done after the further advance has completed.
- Remortgage service
Mortgages -
The remortgage service is available on most, but not all, of our remortgage products. Where your client uses our remortgage service, we will pay our conveyancers' legal fees, any registration fees and, if the property is leasehold, their landlord's fees for answering our conveyancer's enquiries.
Your client will have to pay any fees their existing lender may charge in connection with repaying your clients current mortgage.
These include your client's existing lender's conveyancer's fees if the existing lender does not allow our conveyancer to act for them too. Halifax conveyancers may be able to offer to do extra legal work for your client at the same time as the remortgage (not in Northern Ireland). If your client decides to use them, they will make a separate charge for the extra work and your client will have to pay for it. Your client should ask about the charge before asking the conveyancers to do any extra work for them.
Your client can choose their own conveyancer to act. Also, our remortgage service is not available with some of our remortgage products and your client will have to choose their own conveyancer to act if they decide to have one of these products. This conveyancer will act for Halifax in the remortgage, provided they are on our panel of conveyancers, and your client must pay the legal charges, and any search fees, registration fees or other costs, whether or not the matter goes ahead. The search insurance facility will not be available.
Please be advised that the remortgage service is not available for customers who are capital raising on a mortgage free property.
These customers should be offered 'homemover' products and must therefore:
Maximum LTV for remortgages and capital raising is 95% (unless stated otherwise). If lending for home improvements estimates are not required unless lending against improved valuation then estimates should be provided to the valuer, however interest will be charged.
- Pay the relevant valuation fee
- Arrange and pay for their conveyancing.
They will be entitled to the relevant 'Homemover' product and any associated incentive.
- Remortgages
Mortgages You must ensure your client has owned their property for at least six months before submitting a re-mortgage application. Maximum LTV for remortgages and capital raising is 90% (unless stated otherwise). If lending for home improvements, estimates are not required unless we are lending against improved valuation, then estimates should be provided to the valuer.
- Repayment
Further advance & product transfer -
Where the account is already a regulated mortgage contract and the client requires a Further Advance, there are 3 possible scenarios:
- Current mortgage on repayment - further advance must be on repayment.
- Current mortgage is on part repayment and part interest only - further advance must be on repayment.
- Current mortgage is on interest only - further advance can be on either repayment or interest only. The interest only amount on the current mortgage must not be altered.
Additional borrowing applications will not be permitted within 6 months of completion of the original mortgage.
- Retirement home plan (RHP)
Mortgages -
A retirement home plan mortgage is a lifetime mortgage scheme conducted on an interest only basis. No deduction is made in the affordability calculations for the cost of an investment. RHP mortgage is only normally available to applicants over the age of 65. There is discretion for applicants under 65, in circumstances where they are retired with no earned income. Funds can be used for any purposes. Maximum LTV - 75%. Retirement home plan has been classed as a lifetime mortgage scheme by the FSA so is subject to the specific sections of MCOB.
- Revaluation fees
Further advance & product transfer -
If the total loan (mortgage plus further advance) exceeds more than 80% (subject to standard lending limits) of the indexed valuation, and your client feels that the property value is higher, they may provide an estimated property value. A revaluation will be required to support the estimated property value being used. The valuation fee to be charged will be based on the estimated valuation keyed.
The fee must be paid in advance by the client before a valuer can be instructed.
Estimated Value up to and including (£) |
Valuation fee including VAT if applicable (£) |
£150,000 |
£108 |
£200,000 |
£128 |
£300,000 |
£165 |
£400,000 |
£200 |
£500,000 |
£233 |
£600,000 |
£260 |
£700,000 |
£290 |
£800,000 |
£318 |
Over £800K contact your local processing centre |
|
- Revised property details
Mortgages -
Once a mortgage application has been made, if the property to be mortgaged changes, and the client's original mortgage product has been withdrawn, a new product from the current range must be selected.
- Right to buy
Mortgages -
Loans may be accepted up to 100% of the discounted purchase price, provided that they do not exceed Halifax lending limits based on valuation. Home improvements allowed - for funds to be released we require sight of invoices, alternatively a retention will be made at completion; funds will then be released on production of invoices.
- Self build
Mortgages -
- Are acceptable but the construction, whether by the customer or self build group, must be monitored by a suitably qualified consultant employed by the customer/group who will provide the necessary construction certificates.
- Flats, maisonettes and semi-detached properties are not accepted.
- We will consider a maximum LTV of 80% of the lower of valuation/cost of construction (including land purchase) subject to normal lending limits.
- The loan is released in instalments (first always to conveyancer) subject to the interim value determined by our valuer and receipt of an interim certificate from the consultant. A minimum of 10% of the loan is retained until the property is complete. A final valuer inspection is required together with a Final certificate from the consultant.
- Customer must be able to buy the plot and proceed with building works up to the appropriate stage before the first instalment is released.
- Self employed
Mortgages -
If client’s shareholding is not 100%, need to establish if declared net profit is the full 100% or client’s share of profit.
- Shared equity schemes (affordable housing)
Helps your clients to become homeowners -
Shared equity schemes allows your clients to become a home owners with the assistance of a third party who takes an equity share in the property to help fund the purchase.
The third party's equity share is secured by way of a second charge or ranking. It is usually in the form of an interest free, payment free loan that becomes repayable on resale, together with a share of any increase in the value of the property.
The main shared equity schemes in the UK are:
- England – HomeBuy Direct
- Wales – HomeBuy
- Scotland – Homestake
- Shared equity schemes (HomeBuy Direct)
For homebuyers in England -
This scheme is part of a Government initiative to help certain groups of people including key workers (such as nurses, police officers and teachers) and social tenants to afford their own homes. It enables people to buy selected new build properties with the help of an equity loan.
The scheme is available through the Homes and Communities Agency who together with the house builder will provide an equity loan of up to 30% of the value of the property. The buyer will secure the remaining equity share. The equity loan will be secured by way of a second charge with an interest charge/fee payable after the first five years.
Application Processing
A HomeBuy agent (usually a housing association) will approve the applicant's eligibility for the scheme and you can then proceed with the mortgage application - applications can be processed in line with existing shared equity scheme procedures.
Where shared equity schemes include any element of interest this must be reflected in the application details keyed regardless of when the interest charge becomes payable.
Further Information
For further information on processing shared equity scheme applications, contact your local processing centre.
- Shared equity schemes (HomeBuy)
For homebuyers in Wales -
This scheme was introduced by the Welsh Assembly to assist people with housing needs. It lets them buy a property on the open market with the help of an equity loan provided by the Assembly.
The buyer funds 70% of the purchase with the Welsh Assembly funding the balance through a 30% equity share. The Welsh Assembly's equity share is secured by way of a second charge. It is usually in the form of an interest free, payment free loan that becomes repayable on resale, together with a share of any increase in the value of the property.
Application processing
The schemes are operated by a registered social landlord (usually a housing association). Applications should be processed in line with existing shared equity procedures.
Where shared equity schemes include any element of interest this must be reflected in the application details keyed regardless of when the interest charge becomes payable.
Further information
For further information on processing shared equity scheme applications, contact your local processing centre.
- Shared equity schemes (homestake)
For homebuyers in Scotland -
This scheme was introduced by the Scottish Executive to assist people with housing needs. It lets them buy a property on the open market with the help of an equity loan provided by the government.
The buyer funds between 50% & 80% of the purchase and the Scottish Executive funds the balance through an equity share.
The Scottish Executive's equity share is protected by a ranking agreement. This is usually in the form of an interest free, payment free loan that becomes repayable on resale, together with a share of any increase in the value of the property.
Application processing
The schemes are operated by a registered social landlord (usually a housing association). Applications should be processed in line with existing shared equity procedures.
Where shared equity schemes include any element of interest this must be reflected in the application details keyed regardless of when the interest charge becomes payable.
Further information
For further information on processing shared equity scheme applications, contact your local processing centre.
- Shared ownership
Helping people onto the property ladder -
Shared ownership schemes are available in England and Scotland (75% max LTV applies to Shared Ownership in Scotland).
These schemes allow people to buy a home in stages. The homeowner buys an initial percentage of the market value of the property. They own that percentage of the property and rent the remaining share.
The remaining share is owned by a landlord (a registered social landlord such as a housing association or local authority).The homeowner pays rent to the landlord appropriate to the share of the house the landlord owns.
The Government's HomeBuy initiatives have introduced two types of shared ownership schemes:
Social HomeBuy
For tenants buying their own home
New build HomeBuy
For key workers, existing tenants and those in need
- Shared ownership (new build HomeBuy)
For key workers, tenants and those in housing need -
This scheme is available in England only.
This is a shared ownership scheme is aimed at key workers, existing social housing tenants and those in priority housing need in England. The schemes are run by a registered social landlord (usually a housing association) or private developers with housing corporation backing.
Application processing
A HomeBuy Agent (usually a housing association) will approve the applicant's eligibility for the scheme and you can then proceed with the mortgage application - applications should be processed in line with existing shared ownership scheme procedures.
Note
1. You should refer any further advance applications to your local processing centre quoting the 'exclusion code' and we will be able to process the application on your behalf.
Further information
For further information on processing new build HomeBuy applications or any other shared ownership schemes, contact your local processing centre.
- Shared ownership (social HomeBuy)
For local authority and housing association tenants -
This scheme is available in England only.
Where the local authority or housing association participates in the scheme, a discount will be applied to the purchase price of the borrower's initial and future shares in the property.
Application processing
Applications should be processed in line with existing shared ownership scheme procedures. In order to take account of the discount, the cases need to be keyed as both shared ownership and right to buy.
How to process the application
Example - A 50% share of a £100,000 property is being purchased under the social HomeBuy scheme. The discount on the purchase price of the initial share is £2,500.
Scheme screen
- Select both shared ownership and right to buy
Loan screen
- Enter the purchase price, £47,500 (50% of £100,000 less the £2,500 social HomeBuy discount)
- Enter the market value, £50,000 (the purchase price without the discount)
- Enter the source of deposit as HomeBuy
Shared ownership screen
- Record the applicant's shared ownership share, 50%
- Record the landlord and amount of monthly rent if known
Notes
- You should refer any further advance applications to your local processing centre quoting the 'exclusion code' and we will be able to process the application on your behalf.
- Wherever possible a personal stake is preferred but loans can be considered up to 100% of the discounted purchase price, providing it does not exceed Halifax lending limits based on valuation.
Further information
For further information on processing social HomeBuy applications or any other shared ownership schemes, contact your local processing centre.
- Shareholders
Mortgages -
If client has a shareholding of 25% or greater share in the company through which their income is derived, we treat them as self employed.
- Sub-sales and back-to-back transactions
Mortgages -
Sub-sales and back-to-back transactions are not acceptable.
A sub-sale occurs when a property is bought and then sold on within six months, i.e. the borrower is buying the property from someone who has themselves bought the property less than six months before.
A back-to-back transaction is a type of sub-sale where the intervening seller buys from the original seller and sells on to the borrower on the same day or within a few days. We also regard as sub-sales, cases where the seller acquires the freehold (or superior leasehold) title to the property, which they then immediately sell on to the borrower by the grant to them of a lease (or sub-lease).
The following cases are exceptions where it is acceptable for the property to be sold on within six months of acquisition by the seller.
Where sales are by:
- a personal representative of the registered proprietor; or
- an institutional mortgagee exercising its power of sale; or
- a receiver, trustee-in-bankruptcy or liquidator; or
- a developer or builder selling a property acquired under a part-exchange scheme.
Applications which involve assignable contracts or irrevocable powers of attorney in favour of intervening sellers are not acceptable. Any other structure to the transaction which has a similar effect should be reported to us.
- Subsequent charges (SCG)
Further advance & product transfer -
If a SCG is present your local processing centre will contact you if there is a problem with the SCG type or problems in obtaining a letter of postponement (LOP).
- If any of the following SCG reasons are present the further advance cannot proceed:
- Bankruptcy inhibition
- Bankruptcy order
- Creditors notice
- Drug trafficking offence
- Receiving order
- Sequestration
- If the SCG is registered to a non-clearing bank and is to be repaid, a conveyancer must be instructed.
If the client does not intend to repay the SCG using the further advance and will therefore continue after completion, Halifax will request a letter of postponement (LOP) from the SCG lending company. If the LOP is not granted the further advance cannot proceed. It is not unusual for the SCG lending company to refuse to grant an LOP.
- Term changes
Further advance & product transfer -
- Further advance applications where the mortgage is already a regulated mortgage contract (RMC), or is not currently a RMC and will not become a RMC following completion:
- The new further advance can be taken over a new term in whole years (the new term will also apply to any existing additional lending term 1 loan present).
- The new further advance can be taken over the remaining term of an existing additional lending term 1 loan.
- Further advance applications where the mortgage is not currently a RMC but will become a RMC following completion (refinanced):
- The new further advance can be taken over a new term in whole years (the new term will also apply to any existing additional lending term 1 loan present).
- The new further advance can be taken over the remaining term of an existing additional lending term 1 loan.
- Where a new term has been selected for the further advance, the new term can be applied to the whole mortgage if required.
- Tracker rates
Mortgages Tracker rates are linked to the Bank of England bank rate. This is announced from time to time by the Bank of England’s Monetary Policy Committee (MPC). If the MPC decides to change the repo rate, we will change the tracker rate in line with it. This will be within 30 days of the publication of the minutes of the MPC meeting at which the decision to change the repo rate was made.
At the end of the tracker rate period the tracker rate mortgage will cease to be a tracker rate mortgage and we will charge your client interest at Halifax Standard Variable Rate unless we write to tell them that we are prepared to allow the mortgage to remain a tracker rate mortgage.
We can change the amount by which the tracker rate is above or below the Bank of England bank rate (the tracker margin) to your client's advantage at any time. However, we can only change the tracker margin to your client's disadvantage at any time that the repo is below 3% a year. The change we make to the tracker margin may be more or less than the amount by which the bank rate has fallen. We will give your clients advanced notice of any such change. Any customer whose tracker rate is subject to an early repayment charge will have three months from the date a change to their disadvantage takes effect to repay their mortgage, if they want to, without having to pay the early repayment charge.
If we make a change in the tracker margin to your client's disadvantage while the Bank of England bank rate is below 3% and its subsequently goes back up to 3% or above, the changed margin will continue to apply until we change the tracker margin again.
All variable rates are stated at their current levels and are subject to change.
- Transfer of equity
Where a party is being removed from a mortgage Applications will only be considered where the party to be removed from the mortgage will no longer reside in the mortgage property.
- Unusual properties
Mortgages No freehold flats. Studio and basement flats acceptable, subject to valuer's comments. No limit to acceptable number of floors, subject to valuer's comments. Unacceptable construction - most PRC without an approved repair or repair plan.
- Valuation fees
Mortgages -
Purchase price not exceeding (£) |
Level 1 valuation fee (£) |
Level 2 survey and valuation fee (£) |
£50,000 |
£240 |
|
£100,000 |
£280 |
£460 |
£150,000 |
£315 |
£490 |
£200,000 |
£355 |
£540 |
£300,000 |
£430 |
£660 |
£400,000 |
£500 |
£790 |
£500,000 |
£565 |
£930 |
£600,000 |
£620 |
£1070 |
£700,000 |
£680 |
£1210 |
£800,000 |
£735 |
£1350 |
Over £800,000 |
Fee on application |
Fee on application |
- The fee includes VAT (if applicable) and a £100 administration charge.
- If the purchase price is discounted then the valuation fee will be based on the valuation figure. Prices correct at January 2010.
- Valuations and surveys
Mortgages -
A Halifax Valuation Report is required to see if the property is sufficient security for the mortgage. The homebuyer survey and valuation report is usually completed on the standard report format prepared by RICS. Where a property is to be occupied for the first time (i.e. newly built or converted), valuation must be carried out by Colleys.
- Vendor gifted deposits
All products -
Vendor gifted deposits and other cash incentives will typically be acceptable provided the value of these does not exceed 5% of the lower of purchase price/valuation. Cash incentives in excess of this amount may result in a reduction in the maximum loan available. Details of any cash incentives must be declared at the point of sale.
- Working tax credit
Mortgages -
Can use 100% in multiples subject to confirmation in writing.