If your current mortgage deal is coming to an end, now is the time to remortgage and start the mortgage application process. The sooner you get the ball rolling the better, as you don’t want to end up on your current lender’s standard variable rate (SVR). As their SVR will be higher than the rate on your existing mortgage, you will have a bigger monthly expense to deal with if you don’t remortgage in time.
You are spoiled for choice when it comes to lenders. But if you are considering a Halifax mortgage when you remortgage, here are a few of the things you need to know.
How long does it take to remortgage with Halifax?
Remortgaging to a Halifax mortgage can take between 4-8 weeks to get all of the necessary paperwork together early, as this is one way to hurry the process along.
One of the most googled terms for a Halifax remortgage is – How long does a mortgage application take Halifax. The reason for this is mortgage applicants get frustrated when a remortgage takes too long! If a Halifax remortgage takes too long you can end up on the Halifax standard variable rate and this will lead to a sharp increase in your monthly mortgage payments. The key to a quick remortgage is having the right paperwork and information upfront which we will cover in the next part of the guide.
The paperwork you’ll need for your Halifax Remortgage
The paperwork needed will be very similar to the paperwork you were asked to provide for your current mortgage. Much of it will be related to your financial circumstances and constitute financial advice, as Halifax will be keen to know that you can afford to remortgage to them.
Paperwork needed for mortgage application will include:
- 3 months worth of bank statements
- Utility bills from your current address
- 3 months worth of payslips
- Your P60 Tax Return
- Your company accounts (if you are self-employed)
- An SA302 Tax Calculation Form (if you are self-employed)
- ID documents
- A mortgage redemption statement (if you are paying off your current mortgage early)
Halifax will advise you further on the documents you need for your remortgage, alternatively, get in touch with our team of advisors.
Remortgage at the right time to avoid fees
Making sure that you remortgage at the right time is important if you want to avoid any unnecessary fees or higher interest rates. If you switch mortgages early, you may have to pay the Halifax early repayment charge (ERC). However, if you remortgage too late, you will be moved onto the Halifax standard variable rate (SVR) at the end of your current mortgage deal. The SVR is a much higher rate than any fixed-rate deal and your monthly payments will increase by quite a bit.
It always makes sense to get some expert mortgage advice and start your remortgage journey 3 months – 5 months before your existing Halifax mortgage deal is up. Doing this means that you should be able to move onto your chosen new mortgage deal just as your current fixed rate comes to an end.
Halifax Early Repayment Charges
Below is a table which lists the early repayment charge amounts for Halifax over the fixed term.
| Fixed Rate Deal Period - (Halifax Early Repayment Charges) | |||||
|---|---|---|---|---|---|
| 2 years | 5 years | 10 years | |||
| Year 1 | 2% | 5% | 6% | ||
| Year 2 | 1% | 4% | 6% | ||
| Year 3 | 3% | 6% | |||
| Year 4 | 2% | 6% | |||
| Year 5 | 1% | 6% | |||
| Year 6 | 5% | ||||
| Year 7 | 4% | ||||
| Year 8 | 3% | ||||
| Year 9 | 2% | ||||
| Year 10 | 1% | ||||
This information is correct and true as of the 5th of December 2022. These charges are applicable on new mortgages with the lender and could be different for existing/historical mortgages.
It has been our observation that with the recent interest rate increases, sometimes it can make financial sense to pay the early repayment charge. In situations where it makes sense to pay the ERC, it is usually to grab a great fixed rate before it rises further. Sometimes the ERC will cost you less than waiting and end up with a rate that is higher and costs more in the long run. – Grant Humphries (Mortgage Adviser)
Halifax Mortgage Renewal: What Mortgage Deal Can I Get?
Halifax offers the same mortgage that most other lenders will offer you. These include:
- Fixed-rate mortgages
- Variable-rate mortgages
- Tracker rate mortgages
- Buy-to-let mortgages
The interest rate on any Halifax mortgage renewal will depend on your financial situation and how much you are eligible to borrow. There are a number of calculators and tools on the mortgage renewal Halifax website that can help you find out the type of mortgage options that can be made available to you.
How Easy Is It To Remortgage With Halifax?
Remortgaging is a fairly straightforward process, assuming there are no issues with your mortgage application. There is less work to do and fewer fees to pay, so you shouldn’t find it as stressful as the first time you took out your mortgage.
To get your remortgage with Halifax underway, you won’t even need to have a face-to-face meeting with a mortgage adviser, unless their advisers request it. In most cases, everything can be done over the phone or online. This makes life easier for you as you won’t need to take a lot of time out of your day when applying for your new mortgage deal.
Getting started with a Halifax remortgage is easy. Simply head to their website and apply online for your new mortgage deal. You can call them if you have any questions and there is the option to do a video call with them too!
Should I Get a New Mortgage Deal With Halifax?
Halifax is one of the most well-known lenders out there so it’s understandable that you might choose them for your remortgage.
However, you will want to make sure you get the best mortgage deal possible. Halifax might try to tempt you over to their side but you want to make sure that you are financially better off in the long term.
So, before you get the process started, check out the mortgage deals that Halifax is offering. Compare these to the deals that your existing lender can offer and consider which might be the better option. If your lender can offer you better deals, then you might decide to stick with them instead.
The advantages to remortgaging with Halifax.
- You might not need to pay a mortgage valuation fee or solicitor fee
- You can avoid early repayment charges if you remortgage before your lock-in period ends
- The process will be quicker as the lender will already have your details
- You can usually avoid a credit check if you have managed to keep up with your existing repayments
The disadvantages of remortgaging with Halifax.
- It is unlikely you will get offered your best available mortgage deal.
- You will not be offered any new customer incentives
- Your lending criteria may have changed therefore you may not fit their minimum affordability. (For example, you have changed from employed to self-employed)
If you already have a Halifax mortgage, you might assume it’s easier to remortgage with them, for some of the reasons we listed above. However, you should still shop around and compare their mortgage deals with those provided by other lenders before coming to a decision. This way, you won’t get locked into a deal that you can’t afford.
Does Halifax Have The Best Remortgage Deals?
The remortgage deal offered to you by Halifax will depend heavily on a number of factors. These will include your level of income, your credit score, and the size of the deposit that you are willing to put down. As was the case with your existing mortgage, such factors will determine how much you can borrow. If Halifax considers your risk for any reason, you might not benefit from their best deals.
Before applying for a remortgage, do as we have suggested already, and compare their deals with other deals on the market. Use the online calculators Halifax offer to get an idea of what deals may be available to you.
When is the earliest I can remortgage with Halifax
With interest rates rising it goes without saying that the majority of people are wanting to remortgage at soon as they can. Grab your Halifax redemption statement quickly! The date that your existing fixed rate ends and therefore the date you can switch to a new fixed deal will be in black and white on the Halifax mortgage statement. If you can’t find your Halifax redemption statement give us a call and we will be able to get you this almost instantly.
Agreement in principle Halifax
If you need an agreement in principle, Halifax has a great system that allows you to know how what size mortgage you can get.
It’s worth noting that the Halifax mortgage in principle will not leave a footprint on your credit file. This is really positive and means if Halifax will not lend you what you need or decline you for a mortgage you will not be penalised in any way at all.
Get In Touch With Our Team Of Mortgage Advisers
As mortgage brokers, we have access to remortgage deals that are not found on the high street. So, no matter how good the deals at Halifax might be, it’s possible that there are other mortgages out there that are better suited to your personal situation.
We will analyse your situation, give you financial advice, let you know which mortgage you are eligible for, and help you compare them with others on the market.
If the deals at Halifax suit you better, then great! But if we find a better deal, we will advise you whether you will be financially better off in the long term. We will also organise the mortgage application on your behalf so you will have one less headache to worry about.
Furthermore, as a fee-free mortgage broker all our advice and mortgage support is free, so what further incentive do you need to use our mortgage services? You will get access to the best mortgage deals with all of the support needed for your full mortgage application.
Get in touch today to learn more about the range of services we can offer you.
