Halifax Intermediaries is introducing changes to its affordability model following broker feedback.

In a note to brokers, the lender confirmed that as of Monday 13 February, its affordability calculation will show an enhanced maximum loan amount up to 75% LTV for remortgage customers applying for a like-for-like loan amount with no extra borrowing and purchase or remortgage customers selecting a fixed rate product with a term of five years or more.

The affordability result at Decision In Principle (DIP) will include enhancements that apply. 

Not all customers will see an enhanced maximum loan because, the lender says, if a loan to income (LTI) cap applies this will cap the maximum loan amount available as normal and no enhanced maximum loan amount will show above 75% LTV.  

The broker note reads: “This targeted enhancement ensures responsible lending while increasing the maximum amount available to customers who are borrowing at a maximum loan-to-value (LTV) of 75%, on a fixed term product of five years or more or are remortgaging to us without taking on additional borrowing.

“This could see the maximum lending amount increase by up to 9%, or around £25,000 on an average application.”