Head of Content
Mortgage Advisor & Director
Halifax
About Halifax Mortgages
Halifax is among the UK's leading mortgage providers. A division of Lloyds Banking Group, Halifax was founded in 1853 as a building society before becoming the UK's largest by 1913. Halifax offers a range of mortgages for first-time buyers, homemovers, landlords and later life borrowers. Halifax offers relatively high loan-to-value (LTV) deals and mortgages through government schemes, including the Mortgage Guarantee Scheme and Shared Ownership.
You can compare the latest rates from Halifax with their competitors below:
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Types of mortgage available
Halfax's mortgage products are split into the following broad categories:
- First-time buyer mortgages
- Homemover mortgages
- Remortgages
- Buy-to-let mortgages
- Equity release and retirement mortgages
Halifax's residential mortgage range is dominated by fixed-rate deals with 2, 5 and 10-year introductory rates periods. They also offer 2-year tracker rate mortgages as an alternative.
The lender offers exclusive deals for some demographics, including existing customers and those buying 'green' or eco-friendly homes.
Our team of experts work with hundreds of lenders, including Halifax, to find your perfect mortgage. Whatever your situation, we make sure you get the best deal possible. Get started comparing Halifax mortgages to their competitor's rates and deals today.
How much deposit do you need for a Halifax mortgage?
The Halifax is a bank that offers residential mortgages to first-time buyers with low deposits. The acceptance of the application will depend on the amount of deposit they have, but it needs to be at least 5% of the property's value. If you are able to afford more than 5%, you can often get reduced initial interest rates. The maximum loan to value (LTV) for a Halifax mortgage is 95% of the property value. This will be based on the value of the property you're looking to buy.
What mortgage rates are they currently offering?
Halifax mortgage rates are generally competitve with other high street mortgage lenders, and often lower than specialist mortgage providers'.
The exact rate you end up with will depend on the amout of deposit you have, the overall strength of your application and the type of product you choose.
You can compare the latest mortgage rates from Halifax with their competitors across the market using our free mortgage-sourcing tool.
Buy-to-let mortgage criteria
The criteria for a buy-to-let mortgage with Halifax is as follows:
- Deposit requirements: You will need a mortgage deposit of at least 30% of the property value
- Portfolio size: Portfolio landlords cannot own more than 10 rental properties, including any they hold with Halifax
- First-time buyers: Will need to be buying the propertly with at least one other person who already owns a property
- Age: Must be aged over 21 and be no older than 80 during the mortgage term
- Property: Cannot be divided into multiple units, must be valued over £50,000 and has a minimum EPC rating of 'E' or above (unless exempt)
- Rental income: Must cover the annual mortgage repayments by at least 125%
Can you get a Halifax mortgage with bad credit?
Yes. Halifax offer bad credit mortgages to borrowers with specific types of adverse, such as defaults and missed payments. They also consider offering mortgages to customers with moderately severe credit issues, such as county court judgements (CCJs).
Very severe credit problems such as bankruptcies and debt managment plans (DMPs) need to have been settled for at least six years before Halifax will consider lending.
Worried that your credit history might stop you from getting a mortgage with Halifax? You can compare their mortgage deals against other lenders and access support from mortgage brokers who specialise in bad credit - get started here
How much will Halifax let you borrow?
Halifax will let you borrow between 4.49 and 5.5 times your annual salary. The exact income multiple they use will depend on your income, the LTV ratio and the mortgage amount, among other factors.
You can use our calculator below to work out how much you could potentially borrow from Halifax and other lenders who use these income multiples.
Does Halifax offer self-employed mortgages?
Yes, and they are more flexible than some lenders with their requirements for self-employed borrowers. Most mortgage providers expect self-employed mortgage applicants to have at least two years' accounts, but Halifax will consider approving you with just a year's worth.
They based their affordability assessment on an average of your earnings over the last two years, or the latest trading year (whichever is lower).
Halifax also lends to self-employed borrowers with declining profits, with conditions attached, and to limited company directors and contractors.
Later-life lending options
Halifax offer standard residential mortgages to older borrowers, but the maximum age they can be at the end of the term is 80, or 75 if it's an interest-only mortgage. They do not offer retirement interest-only (RIO) mortgages but can arrange equity release (lifetime mortgages) for eligible homeowners via Scottish Widows, a division of their parent company, Lloyds Bank plc.
Is Halifax a good mortgage lender?
At the time of writing, Halifax has a star rating of 1.5/5 on reviews website TrustPilot, but has fared better on other online platforms and publications. They have an average rating of 3.93/5 on Smart Money People, based on 141 customer reviews, and Which? ranked them joint 14th out of 22 UK lenders with a score of 66%.
Pros and cons
The table below shows the advantages and disadvantages of Halifax as a mortgage lender to help you decide whether they are right for you:
|
Advantages |
Disadvantages |
|
A wide range of products available |
Uses a lower income multiple for affordability than some lenders |
|
Flexible with self-employed borrowers (offers mortgages based on 1 year’s accounts) |
Unable to extend mortgage offers once they have been tabled |
|
Low deposit mortgages available (95% LTV) |
Those with more severe bad credit may need to look elsewhere |
|
Able to accept borrowers with some types of bad credit |
Limited guarantor mortgage options |
Common reasons Halifax reject a mortgage application
There are several reasons why Halifax might reject your mortgage application. Just because you've had a mortgage application declined in the past, doesn't mean you'll be declined the next time. However, the most common reasons for mortgage application rejections include:
1. Severe bad credit: Halifax is unable to approve applicants with issues such as bankruptcies and debt management plans unless they were settled at least six years ago.
2. Affordability: They usually cap their maximum borrowing at 4.5 times the borrower's annual salary, which is a lower income multiple than some of their competitors
3. Not enough deposit: 95% LTV mortgages are typically reserved for borrowers who are applying through government schemes or taking out specialist products. If you are making a standard residential mortgage application with less than 10% deposit, Halifax might decline you.
We have a standalone guide for people who have been declined for a mortgage by Halifax which you can find through the link.
How to compare Halifax mortgage deals
The best way to compare Halifax's products is through a whole-of-market mortgage broker. They can provide you an overview of every Halifax mortgage product that you qualify for along with a comparison of equivalent deals from across the market.
You can view Halifax mortgage deals as well as alternatives from other lenders for free through Teito, and we have mortgage brokers on hand to make sure you secure the right mortgage for you, whether that's with Halifax or another provider who is a better fit for you.
How Teito Works
You have two options when you get started with Teito: you can select the option to speak with an advisor straight away or source a mortgage yourself. If you want to choose your own mortgage deal, follow the steps below:
Click ‘Get Started’
Hit the button below and enter a few quick details. It takes less than 60 seconds to begin the mortgage process with us
Compare Quotes Online
Next you can view rates and deals from across the entire market online and choose the one you want in real time
Apply Online
We’ll take it from here and have an expert mortgage broker on hand to ensure you have chosen the best deal for you
FAQs
If you have a Halifax mortgage and are considering renting out your home, you'll need to get Halifax to grant you permission, known as a consent to let. If you rent our your home without approval, they could add interest on top of your current mortgage rate, increasing your monthly payments, or even stop your future borrowing.