Halifax Intermediaries has told brokers it will make changes to the way high loan-to-value mortgages should be entered on its hub from next week.
The lender says: “After Monday 30 June applications for mortgages above 90% LTV to 95% LTV are accepted as before, the only change is that the ‘Homebuyer Special’ scheme should no longer be selected.”
It adds that mortgages up to 95% LTV will remain available for first-time buyers and homemovers buying their homes under the following criteria:
• A minimum 5% personal deposit is required and product fees cannot be added above 95%
• This must be the customers only residence and they must not have an interest in any other properties such as a second home or buy to let
• New build houses/bungalows (not flats) are included
• Maximum purchase price of £600,000 and maximum loan of £570,000
• No ‘schemes’ can be selected (shared equity, shared ownership, right to buy are not acceptable)
• An enhanced credit score requirement will be applied
• A maximum 4.49 times loan to income cap will be applied as part of our affordability assessment
• Current credit commitments will be deducted as ongoing in our affordability calculation even when declared as ‘to be repaid’ at or before completion. The loan amount must be affordable with these commitments deducted as remaining
• Lending into retirement is allowed subject to normal criteria
