Halifax Mortgages Reviewed

With a fixed-rate mortgage, the interest rate on your mortgage will be fixed for the length of your introductory deal (between 2-5 years). After this time, you will fall onto Halifax’s standard variable rate unless you remortgage to a new deal.

A fixed mortgage is a good idea if you want the peace of mind that the repayments on your mortgage won’t change during the introductory period.

With a tracker-rate mortgage, the interest rate on your loan will rise and fall in line with Bank of England’s base rate.

If the interest rate drops, your mortgage payments will also drop. But if the rate rises, your monthly repayments will be higher and the total cost of your loan will increase.

Your home or property may be repossessed if you can’t afford to pay your mortgage, so keep this in mind when considering tracker mortgages.

First-time buyers who choose from Halifax’s ‘first-time buyer exclusive range,’ will be given a lump sum of cash on the day they draw down their mortgage.

The amount of cashback you receive will be dependent on the mortgage that you have applied for. Currently, eligible customers can receive between £500 – £1000 as a lump sum.

If you want to make money from renting out properties, you may be eligible for one of Halifax’s fixed buy-to-let mortgages that are offered on either a repayment basis (capital and interest together) or an interest-only basis.

To be eligible for one of Halifax’s buy-to-let mortgages, you will need to be over 18 years of age, have a deposit of at least 25% (or higher for certain properties), and be looking for a property that is worth at least £40,000. Other eligibility requirements will also apply.

Unfortunately, investing in certain types of properties does not qualify for a mortgage from Halifax. Currently, they are unable to provide mortgages on:

• multiple tenancies,
• Homes of Multiple Occupancy (HMOs),
• bedsits,
• holiday lets,
• ‘Related Person’ tenancies,
• or any property that is subject to selective licensing schemes.

Secure your future today by taking advantage of Halifax’s generous loan-to-value (LTV) program, which offers up to 95% coverage on the value of your property.

Halifax offers a 95% LTV mortgage that allows you to purchase property with only a 5% deposit! This means your loan will cover up to 95% of the cost of the house.

Example: For a property costing £200,000 and a mortgage with a loan to value of 95%, Halifax will lend you £190,000 if you can put down the £10,000 deposit.

• £190,000 = 95% LTV
• £10,000 = 5% Deposit

90% LTV mortgages

Halifax offers a range of LTV mortgage deals, including home loans with a loan-to-value of 90%.

With a 90% LTV mortgage, the lender will let you borrow 90% of the property value provided you put down a 10% deposit.

In the case of a house costing £200,000, for example, your 10% down payment would equate to £20,000 and your loan from Halifax would be £180,000.

Halifax offers 91-95% LTV mortgages too, so if you can’t afford a 10% deposit, you may be eligible for a higher LTV with a lower down payment. Be aware that higher LTV deals come with higher interest rates so your total loan amount will increase.

Completing a Halifax remortgage provides many benefits including lowering monthly payments, freeing up funds for home improvement projects and changing your mortgage term. Switching to a new deal with Halifax is the perfect way to make sure that you are getting the best value from your current mortgage! Some benefits of remortgaging with Halifax are:

• Mortgages up to £1 million are exempt from any valuation fees!
• Complimentary fundamental legal services (numerous additional charges may arise)
• With Halifax mortgages, you’ll never have to worry about hefty exit fees – though Early Repayment Charges may still be applicable.

At the time of writing (March 2023), Halifax has competitive mortgage interest rates, which is good news for borrowers. But is the bank offering the best deal? There are many other lenders on the mortgage market, so before you borrow money, it’s wise to consider all of your options.

At YesCanDo mortgage brokers our experienced team of mortgage advisors can compare Halifax’s mortgage deals with the products being offered by other mortgage providers, and give you up-to-date information on the best deal based on your personal circumstances.

We can also advise you on the steps you need to take to be eligible for the lowest mortgage rates, to ensure your level of borrowing doesn’t exceed what you can afford to pay after you have been given your mortgage offer.

Contact us to learn more and benefit from all the advice and support we offer as a Fee Free broker.

A Halifax Product Transfer allows existing mortgage customers to switch to another loan within Halifax’s range more easily and quickly and benefits those on standard variable rates or those who have expired fixed or discounted rate contracts within six months of expiry. The process involves checking eligibility, submitting a transfer request, and accepting their new deal – with no further income or affordability assessments, wide variety of products offered at competitive rates regardless of direct application versus broker application making the transfer faster, simpler and potentially more beneficial to customers than with competing lenders.