Halifax makes affordability modifications following dealer suggestions – Mortgage Technique

Halifax Intermediaries is introducing modifications to its affordability mannequin following dealer suggestions.

In a notice to brokers, the lender confirmed that as of Monday 13 February, its affordability calculation will present an enhanced most mortgage quantity as much as 75% LTV for remortgage prospects making use of for a like-for-like mortgage quantity with no additional borrowing and purchase or remortgage prospects deciding on a hard and fast fee product with a time period of 5 years or extra.

The affordability consequence at Resolution In Precept (DIP) will embrace enhancements that apply. 

Not all prospects will see an enhanced most mortgage as a result of, the lender says, if a mortgage to earnings (LTI) cap applies this may cap the utmost mortgage quantity accessible as regular and no enhanced most mortgage quantity will present above 75% LTV. 

The dealer notice reads: “This focused enhancement ensures accountable lending whereas growing the utmost quantity accessible to prospects who’re borrowing at a most loan-to-value (LTV) of 75%, on a hard and fast time period product of 5 years or extra or are remortgaging to us with out taking up extra borrowing.

“This might see the utmost lending quantity improve by as much as 9%, or round £25,000 on a mean software.”


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