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New Halifax policy on Interest-Only
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kingstreet
Posts: 39,256 Forumite
Hot off the email presses around eleven minutes ago;-
There's a new set of instructions in the Intermediary site, plus a new calculator which tells of maximum borrowings on interest-only.With effect from Tuesday 31 May, all new Interest Only (including part and part) mortgage applications will require evidence of the repayment plan that the customer wishes to use in order to proceed to offer stage. Only if the evidence meets our criteria and covers the full amount requested on an Interest Only basis can a mortgage offer be produced.
Please note that existing customers are also now required to provide a copy of evidence of a suitable repayment plan if they want to convert all or part of their mortgage from Repayment to Interest Only. Once received, this evidence will be checked against our list of acceptable repayment vehicles and the mortgage account will then be transferred to Interest Only.
As a responsible lender, we believe that it is necessary to ensure our borrowers have an appropriate repayment strategy in place to pay off the mortgage balance at the end of their term.
I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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Excellent! A positive step in terms of the Halifax becoming a responsible lender
Feb 2012 - onwards MF achieved
September 2016 - Back into clearing a mortgage - Was due to be paid off in 32 years in March 2047 -
April 2018 down to 28.00 months vs 30.04 months at normal payment.
Predicted mortgage clearing 03/2047 - now looking at 02/2045
Aims: 1) To pay off mortgage within 20 years - 20370 -
Wonder what the allowed repayment options are, besides the obvious.0
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Would an existing Halifax mortgage customer on SVR and not tied into a fixed deal be able to switch to interest only for a period of say 12months (to free up money to pay off credit card) and then get back on repayment mortgage after 12 months?0
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That isn't dealt with today. Sorry.imperial1281 wrote: »Would an existing Halifax mortgage customer on SVR and not tied into a fixed deal be able to switch to interest only for a period of say 12months (to free up money to pay off credit card) and then get back on repayment mortgage after 12 months?
For the others, the Intermediary site isn't password protected, so scroll down to the relevant point in the criteria headed "Interest-Only Repayment Plans";-
http://www.halifax-intermediaries.co.uk/criteria/default.aspxI am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Ouch.
Basically what they are saying is that they can check at any time whether your repayment plan (ISA, Pension, Endowment etc) is on course to repay the loan at the end of the term.
If it isn't they can switch your interest only loan to a repayment without your say so !!!! !!!!!! !0 -
Ouch.
Basically what they are saying is that they can check at any time whether your repayment plan (ISA, Pension, Endowment etc) is on course to repay the loan at the end of the term.
If it isn't they can switch your interest only loan to a repayment without your say so !!!! !!!!!! !
Seems reasonable. Far too easy to dip into the funds or not make regular contributions when money gets tight.0 -
If it isn't they can switch your interest only loan to a repayment without your say so !!!! !!!!!! !
That is to prevent the not uncommon scenario where someone took out an ISA and made just one payment.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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