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Halifax ups LTV for enhanced max loans and improves LTI caps

  • 18/05/2023
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Halifax ups LTV for enhanced max loans and improves LTI caps
Halifax is increasing the qualifying loan to value (LTV) for its enhanced maximum loan amount when choosing a five-year fixed rate and has increased its loan to income (LTI) caps in certain cases to 5.5 times income.

The changes come into force from today.

The qualifying LTV for an enhanced loan amount will go up from 75 per cent to 90 per cent when choosing a five-year fixed rate mortgage.

The lender said this would “expand the number of purchase or remortgage customers who can benefit”.

The enhanced loan amount is for purchase or remortgage customers who select a fixed rate of five years or more and remortgage customers applying for a like-for-like loan amount with no additional borrowing.

It could see the maximum lending amount increase by up to nine per cent, or around £25,000 on an average application.

Halifax has also increased its LTI caps, with like-for-like remortgage customers with no additional borrowing, who receive employed income only, up to 75 per cent LTV and subject to a credit score able to secure 5.5 times income.

This will apply where the standard LTI would normally be below this level. The LTI was previously scaled between 4.49 and 5.5 depending on income, LTV and loan size.

It does not apply to remortgages on an affordable housing scheme, where the 4.49 times income ratio will still apply.

For employed incomes only between £50,000 and £75,000 at 75 to 85 per cent LTV the standard LTI is rising from 4.75x to 5.0x LTI.

Amanda Bryden (pictured), head of Halifax Intermediaries and Scottish Widows Bank, said: “We’re making some affordability changes in response to the changing market and broker feedback, so we can continue to help even more customers.

“It’s important that we continue to support affordability while at the same time delivering the right outcomes for our borrowers. Longer term fixed rates, and the certainty of payment they offer, allow us to do that here.”

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