HALIFAX 95% - the big guns have landed

K_S

Info available -

• Available from 19 April
• Mortgage guarantee scheme
• 2 year fix - 3.73% (£999 fee), 4% no-fee
• 5 year fix - 4% (£999 fee), 4.2% no-fee
• FTBs, non-FTBs and Homemovers
  
• Max loan amount 500k
• No background properties permitted
• No new-builds
• No schemes
• Enhanced credit scoring
• LTI cap of 4.49x
• Affordability - credit commitments as of date of application (irrespective of whether they will be paid off before/on completion or not)
  

Capri84

Underwhelming. What’s an ‘enhanced credit score’? 

lonibra

Super! Bodes well if that's the first Govt Mortgage Guarantee rate. It can only go down from here as more banks enter the space.

ukri

I guess there will be a flurry of announcements from the rest tomorrow.

i expect the 2 year fixed rate mortgage will be the popular one of the bunch.

amnblog

Enhanced credit score means that your credit history needs to be squeaky clean and traceable to stand any chance of using a 5% deposit.

In practice this means you are likely to be unsuccessful if you have missed payments on credit, or do not run credit. Similarly, if the deposit is not your own funds it will stop progress.

mjane93

amnblog said:

Enhanced credit score means that your credit history needs to be squeaky clean and traceable to stand any chance of using a 5% deposit.

In practice this means you are likely to be unsuccessful if you have missed payments on credit, or do not run credit. Similarly, if the deposit is not your own funds it will stop progress.

So if we were gifted 10k by parents for our deposits we wouldn’t be accepted?

Capri84

Halifax themselves just came out today and said the average first time buyer deposit in the UK is now £57k

So if they disallow any gifted deposits, it’s hardly worthwhile offering these mortgages. Possibly just a PR thing. 

MaryNB

Capri84 said:

Halifax themselves just came out today and said the average first time buyer deposit in the UK is now £57k

So if they disallow any gifted deposits, it’s hardly worthwhile offering these mortgages. Possibly just a PR thing. 

With a max loan of £500k the max deposit under this scheme is £25k.

getmore4less

breakeven mortgage size pretty high on the 2 year with £999 fee and 0.27% difference

term
5	£233,042.79
10	£208,554.13
15	£201,569.91
20	£198,305.35
25	£196,439.43
30	£195,248.95
IO	£192,273.53

not so back for the 5 years with 0.2% difference.

term
5	£203,535.48
10	£138,721.32
15	£125,531.88
20	£119,935.75
25	£116,888.58
30	£115,002.62
IO	£110,388.63

getmore4less

MaryNB said:

Capri84 said:

Halifax themselves just came out today and said the average first time buyer deposit in the UK is now £57k

So if they disallow any gifted deposits, it’s hardly worthwhile offering these mortgages. Possibly just a PR thing. 

With a max loan of £500k the max deposit under this scheme is £25k.

A £500k loan with 5% deposit is a purchase of £526,315


given this deal covers 90%+ -> 95%  purchase could go up to £555,555

[Deleted User]

MaryNB said:

Capri84 said:

Halifax themselves just came out today and said the average first time buyer deposit in the UK is now £57k

So if they disallow any gifted deposits, it’s hardly worthwhile offering these mortgages. Possibly just a PR thing. 

With a max loan of £500k the max deposit under this scheme is £25k.

500k purchase with a deposit of £49,000 would also qualify