Halifax Mortgages Background
Halifax has seen itself grow from a couple of offices to a Nationwide giant over more than 150 years. The initial idea for the business came from a group in the Old Cock Inn in December 1852 in the town of Halifax, that were keen to provide an investment and loan society to help the overcrowded town.
Originally split into two societies – Halifax Permanent and Halifax Equitable – their success accelerated at the turn of the century thanks to Enoch Hill’s involvement, going from their first mortgage in 1853 to business being spread nationally across the 1920s. In 1924, they started up their first London office and by the end of the decade, the two societies were ranked first and third in the country. They continued to develop and grow over the course of the century, transforming into the model seen today. Mergers began in the 1990s and led to their largest with Bank of Scotland in 2001, the move that created HBOS. The Group finally became part of the Lloyds Banking Group where it sits today.
Halifax Mortgage Underwriting
Halifax mortgages are active in all areas of the residential mortgage market. As well as standard residential mortgages for purchase or remortgage, they also offer lending for affordable housing schemes such as shared equity and Help to Buy. They are particularly active in the new Build and First Time Buyers markets.
Halifax has a good record of assisting us with tricky and complex cases. They are therefore one of our key lenders. The Halifax online mortgage processing system and experienced underwriting team make for a generally smooth and painless application process.
Halifax mortgages and existing customers
Existing customers are given a range of mortgage product options to select from if staying with the Lender as the current mortgage rate ends.
These options are priced personally for each borrower.
We offer a free renewal service for Halifax mortgages existing customers enabling you to get advice from our team on choosing your new Halifax mortgage rate. We do everything online quickly and simply and by using our service you can get access to a wider rate of product options than available with the lender direct.
Halifax offer mortgage renewals with:
- No credit scoring
- No proof of income (on capital repayment mortgages)
- No paperwork
Halifax and interest only mortgages
Halifax offer new mortgages on an interest only basis and have many existing mortgages on an interest only basis. These are arrangements where the mortgage holder covers the interest cost on the mortgage only and there is not contractual requirement to clear the capital element of the mortgage during the mortgage term.
Interest only mortgages generally prove more expensive that capital repayment mortgages over the mortgage term. They are not recommended without specialist advice and guidance from a qualified mortgage broker. many interest only mortgage are set up with the intention that the mortgage holder will repay the mortgage capital through sale and downsizing at the end of the mortgage term. This can work well where children have grown and the large family home is not longer required.
During the term of a Halifax interest only mortgage it is possible to pay some capital by using the 10% overpayment facility on the mortgage contract, and some borrowers choose to do this.
Mortgage renewal and interest only borrowers
When an existing mortgage product is coming to an end on an interest only mortgage, Halifax will still have ew mortgage product options available for the borrower.
In order to protect themselves and the borrower from any crisis later in the mortgage term the lender will want to recheck the intended capital repayment plan and will also ask for proof of income from the borrower.
We regularly handle Halifax product transfers on interest only mortgages and can assist.