In recent months, Halifax has been introducing a number of changes to its affordability criteria in response to feedback from brokers. The changes are designed to make it easier for borrowers to access the mortgages they need and to ensure that the process is fair and transparent.
The changes include an increase in the maximum loan-to-value (LTV) ratio from 75% to 90%, which will enable borrowers to access more affordable mortgages. Additionally, Halifax has introduced a new affordability calculator which will help brokers assess a borrower’s ability to repay their mortgage. This calculator takes into account a range of factors such as income, outgoings, and other debts, and provides an indication of the maximum amount a borrower can borrow.
Halifax has also made changes to its income assessment criteria. The lender now considers a wider range of income sources, including self-employed income, pension income, and rental income. This will enable more borrowers to access mortgages and will help to ensure that they are assessed fairly.
Finally, Halifax has introduced a new ‘stress test’ which requires borrowers to demonstrate that they can afford their mortgage payments even if interest rates were to rise in the future. This is designed to ensure that borrowers can continue to make their payments even if interest rates increase.
Overall, these changes are designed to make it easier for borrowers to access the mortgages they need and to ensure that the process is fair and transparent. By taking into account a range of factors and introducing a stress test, Halifax is helping to ensure that borrowers can afford their mortgage payments in the future.
These changes are part of Halifax’s ongoing commitment to providing customers with the best possible service and ensuring that the mortgage process is fair and transparent. By responding to broker feedback and introducing these changes, Halifax is helping to make mortgages more accessible and ensuring that borrowers can access the mortgages they need.