New applications
Online application systems will be updated to capture the additional information required and will also request a breakdown of commitments for each applicant.
This will include any additional commitments where repayment is not required for several years.
Any existing loan and debt repayments will now also be accounted for in the affordability assessment.
This includes; childcare costs, school fees, student loans, mortgages, ground rent, second home properties, ther committed expenditure and leasehold service charges.
Product transfers
The product transfer application process for Halifax Intermediaries will include affordability assessments in some cases with the level of income to be evidenced dependant on the nature of the application.
Pipeline cases
All pipeline cases prior to 14 April may continue on to completion unless the customer wishes to make a contract change to the application.
If a customer requests a material change to the term or the repayment method to a pipeline case the application can proceed.
Additional information regarding the customer’s income and financial commitments will be requested alongside a new affordability assessment and a credit search being carried out.
Self-build
From the 12 April self-build mortgage applications will no longer be accepted through BM Solutions but instead through Halifax Intermediaries from 14 April.
As a self-build mortgage converts to a standard mortgage once the build is complete this will enable the customer to undertake a product transfer rather than a remortgage.
The self-build application process through Halifax Intermediaries will remain a two stage paper application process similar to the process used by BM Solutions today.
Halifax Intermediaries business development managers are arranging training sessions with brokers to communicate changes.
