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Halifax tightens income multiples

  • 06/01/2021
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Halifax tightens income multiples
Halifax has tightened its affordability criteria for borrowers with any self-employed income or those earning less than £30,000 a year.


In a note to its intermediaries, Halifax said the 4.49 times income multiple currently used for workers earning less than £25,000 will be extended to include those with annual earnings of less than £30,000.

The bank said it was making the change to ensure it continued to lend responsibly to borrowers on lower salaries.

Applications that include any element of self-employed income will also be subject to the same change.

Halifax said this temporary change would give it “short-term flexibility on products and service levels”. The criteria change will kept under regular review.

To capture the information, the affordability calculator on the Halifax Intermediaries’ website will include the question, “does any applicant have any self-employed income?”

All other loan to income ratios will remain the same.

A spokesperson for Halifax said the bank regularly reviews criteria and the change remains in line with the market.

The changes take effect from Thursday 7 January.

Existing applications will not be subject to the changes.


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