Halifax mortgages

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Lenders don’t generally like to quote mortgage approval times, as they can vary quite a lot depending on the type of mortgage you take, the property you’re buying, your personal circumstances and how long it takes to arrange a property valuation.

Halifax states that it generally takes anywhere between one and six weeks to get a mortgage offer.

This sort of information is not usually openly available, but Halifax may re-look at your credit report after the offer has been issued.

At the mortgage agreement in principle stage, however, they usually conduct a soft search (which doesn’t show on your credit file).

Halifax allows mortgage overpayments of up to 10% of your remaining mortgage balance per year without paying an Early Repayment Charge (ERC) as standard.

If you're thinking of remortgaging with Halifax, for product transfers, they are usually happy to waive ERCs for the last three months of your existing deal as a thank you for staying with them.

If you switch mortgages to another lender at any time before the deal ends, or attempt to do a product transfer more than three months in advance of the end date, you will have to pay ERCs.

There is not strictly such a thing as a self-employed mortgage, but Halifax can serve self-employed applicants, so long as they meet their criteria. 

Usually, in addition to standard information, self-employed applicants would need to provide:

• Two years’ evidence of a regular income and account statements

• SA302 forms or a tax-year overview for the past three years

• Evidence of profits or dividends if you own a business

• Evidence of upcoming work or business if you work as a trader or contractor

• You may also be asked to provide proof of accounts certified by a registered accountant

Halifax mortgage offers are typically valid for 90 to 180 days, but a longer duration is often given for new-build properties.

It may not be possible to extend a mortgage offer with Halifax, however, so once the offer expires you’ll need to reapply.

High street mortgage lenders such as Halifax will typically reject an application that doesn’t fully meet their lending criteria. However, Halifax can potentially cater for milder bad credit mortgage customers, such as those with defaults or CCJs. 

It’s difficult to accurately collect reason for rejection data for each lender, but some of the reasons you may not meet their criteria could be:

• Deposit too small

• Bad credit is beyond their accepted level

• Not long enough period of self-employment (usually less than 12 months of accounts in unacceptable)

• Unable to afford the loan size desired - Halifax caps their lending at a maximum of 5.5 times income for residential mortgages, but this is figure is typically for high income professionals. A more typical income maximum is around 4.5 - 4.75 times your income

• Property not acceptable - Halifax are more flexible than many lenders with the property types they accept, considering both flats over retail premises and Grade 1 listed properties - which many lenders rule out. However, there are still some types they will not lend on - such as freehold flats and maisonettes

If you’re unable to meet the criteria of a high street lender, such as Halifax, a mortgage broker will be able to help you look at specialist lenders, who are typically more flexible with their criteria.

Potentially, but it depends on the level of bad credit. Halifax may consider defaults and CCJs, although they'll want further details before making a decision.

If you have a more serious debt issue, such as having a current DMP or IVA in place, Halifax won’t be able to help you. You’ll likely need to look at specialist lenders.

Halifax will decide how much you can borrow based on lots of different factors, including your deposit size, the property type and condition, and your income level. You'll usually be able to borrow around 4.5 times your income.

However, if you qualify for Halifax's First Time Buyer Boost, you may be able to borrow as much as 5.5 times your income.

If you're moving home and have an existing Halifax mortgage, it may be possible to take your current mortgage rate with you. You'll need to check your documentation and get in touch with Halifax to port your mortgage.

Your other option is to take out a home mover mortgage, which could give you an opportunity to compare rates across different lenders and find the most suitable mortgage deal for you.

If your fixed rate or tracker mortgage ends, you will usually be moved onto Halifax's standard variable rate. This is likely to be higher than the rates offered on other mortgage products. You may, therefore, save money by switching to a new Halifax deal or remortgaging with a different lender. Speaking with a mortgage broker can help you to compare your options and discover the most competitive rates available to you at the time.