For the use of mortgage intermediaries & other professionals only

Affordability changes

From 18 May we are increasing the qualifying loan to value (LTV) from 75% to 90% for an enhanced maximum loan amount when selecting a 5 year+ fixed rate mortgage product, this will expand the number of purchase or remortgage customers who can benefit.

We are also further improving some of the loan to income (LTI) caps applied as part of our affordability calculation:

  • For like for like remortgage customers with no additional borrowing, who receive employed income only, up to 75% LTV and subject to credit score a 5.50x LTI will apply where the standard LTI would normally be below this level.
  • For employed incomes only of £50,000-£75,000 and LTV 75.01-85% the standard LTI is being increased from 4.75x to 5.00x.

Following the affordability changes made this year these changes will help us support even more financially resilient customers with improved affordability outcomes.

For the 5 year+ fixed rate enhancement to apply the whole loan amount must be on a 5 year+ fixed rate, and if porting a product from an existing Halifax mortgage the remaining term on the ported fixed rate product would also have to be 5 years+.

The increased LTI for like for like remortgages would not apply for remortgages on an Affordable Housing scheme (shared equity or shared ownership) where a 4.49x LTI will still apply.

Please see our website criteria ‘Affordability, LTI and Income Multiples’ for more information on our LTI limits. This section and our mortgage affordability calculator will be updated with the above changes from 18 May.

The changes will apply to applications started from 18 May.