Many lenders have been making changes to rules for European Economic Area (EEA) nationals but Halifax is applying these to non-European citizens as well, meaning all international applicants will have to meet the same criteria.
Where all applicants have lived in the UK for more than five years, or the loan to value (LTV) is less than or equal to 75 per cent, or where the applicants’ income is at least £100,000, no permanent right to reside will be required.
When proof of permanent right to reside is required for any applicant, advisers must provide it for all customers on the application.
To determine if a customer has lived in the UK for more than five years Halifax will use credit reference agency data but may still require proof of residence for more than five years.
Application income will include both incomes on a joint application and is the total of basic, overtime, bonus and commission for employed applicants or the latest year’s income for self-employed customers, plus pension income.
“This new simplified criteria applies a consistent approach for both EEA and non-EEA customers and will make it easier for you to know in advance if an application will be accepted,” the lender said in a message to brokers.
The new criteria applies to all full applications submitted from 8 April 2021 and new further advance applications.
Any decision in principle (DIP) keyed before this date but then submitted as a full application from 8 April will also be subject to the new criteria.
Permanent right to reside can include:
- As part of the EU Settlement Scheme EEA, EU and Swiss citizens, living in the UK by 31 December 2020 can apply to continue to live in the UK after 30 June 2021 and will receive one of two statuses which are both acceptable:
- Settled status (awarded where they have lived in UK for at least five years and also known as ‘indefinite leave to remain under the EU Settlement Scheme’).
- Pre-settled status (awarded where lived in the UK for less than five years and they can re apply for settled status after five years continuous residence in UK has been reached).
- Indefinite leave to enter or remain.
- Republic of Ireland citizens do not need to apply under the EU Settlement Scheme and have automatic permanent right to reside in the UK.