About Halifax Mortgages

Halifax is among the UK's leading mortgage providers. A division of Lloyds Banking Group, Halifax was founded in 1853 as a building society before becoming the UK's largest by 1913. Halifax offers a range of mortgages catering to first time buyers, homemovers, landlords and later life bowwowers. Halifax offers relatively high loan-to-value (LTV) deals and mortgages through various government schemes, including the the Mortgage Guarantee Scheme and Shared Ownership. 

As an independent mortgage broker, we can help you secure competitive rates across the market, and often have access to exclusive deals from lenders like Halifax. This gives us the power to offer a service tailored to your individual circumstances, and the ability to find the best deal for you. We can offer advice on products from across the entire market, and if one cannot help we will try our best to get you a great deal with another lender.

Our team of experts work with hundreds of lenders, including Halifax, to find your perfect mortgage. Whatever your situation, we make sure you get the best deal possible. Get started comparing Halifax mortgages to their competitor's rates and deals today.

Types of mortgage available

Halfax's mortgage products are split into the following broad categories:

• First-time buyer mortgages
• Homemover mortgages
• Remortgages
• Buy-to-let mortgages
• Equity release and retirement mortgages

Halifax's residential mortgage range is dominated by fixed-rate deals with 2, 5 and 10-year introductory rates periods. They also offer 2-year tracker rate mortgages as an alternative.

The lender offers exclusive deals for some demographics, including existing customers and those buying a 'green' or eco-friendly property. Our mortgage brokers often have access to exclusive rates from Halifax too.

How much deposit do you need for a Halifax mortgage?

The Halifax is a bank that offers residential mortgages to first-time buyers with low deposits. The acceptance of the application will depend on the amount of deposit they have, but it needs to be at least 5% of the property's value. If you are able to afford more than 5%, you can often get reduced initial interest rates. The maximum loan to value (LTV) for a Halifax mortgage is 95% of the property value. This will be based on the value of the property you're looking to buy.

What mortgage rates are they currently offering?

At the time of writing (April 2024) interest rates on Halifax's residential mortgages are generally between 4.5% and 5.5%. The exact rate they will offer depends on the type of product you choose, the loan-to-value ratio and the strength of your application. Halifax's standard variable rate (SVR) is currently set at 8.74%.

You can compare the latest rates from Halifax with other lenders from across the market for free on Teito. Get started below:

Buy-to-let mortgage criteria

The criteria for a buy-to-let mortgage with Halifax is as follows:

• Deposit requirements: You will need a mortgage deposit of at least 30% of the property value
• Portfolio size: Portfolio landlords cannot own more than 10 rental properties, including any they hold with Halifax
• First-time buyers: Will need to be buying the propertly with at least one other person who already owns a property
• Age: Must be aged over 21 and be no older than 80 during the mortgage term 
• Property: Cannot be divided into multiple units, must be valued over £50,000 and has a minimum EPC rating of 'E' or above (unless exempt)
• Rental income: Must cover the annual mortgage repayments by at least 125%

You can compare the lender's buy-to-let mortgage deals with their competitors for free and access expert advice from a broker through Teito.

Can you get a Halifax mortgage with bad credit?

Yes. Halifax offer bad credit mortgages to borrowers with specific types of adverse, such as defaults and missed payments. They also consider offering mortgages to customers with moderately severe credit issues, such as county court judgements (CCJs).

Very severe credit problems such as bankruptcies and debt managment plans (DMPs) need to have been settled for at least six years before Halifax will consider lending.

Worried that your credit history might stop you from getting a mortgage with Halifax? You can compare their mortgage deals against other lenders and access support from mortgage brokers who specialise in bad credit - get started here

Does Halifax offer self-employed mortgages?

Yes, and they are more flexible than some lenders with their requirements for self-employed borrowers. Most mortgage providers expect self-employed mortgage applicants to produce at least two years' accounts, but Halifax will consider approving you with just 12 months' trading under your belt.

They based their affordability assessment on an average of your earnings over the last two years, or the latest trading year (whichever is lower).

Halifax also lends to self-employed borrowers with declining profits, with conditions attached, and to limited company directors and contractors.

Later-life lending options

Halifax offer standard residential mortgages to older borrowers, but the maximum age they can be at the end of the term is 80, or 75 if it's an interest-only mortgage. They do not offer retirement interest-only (RIO) mortgages but can arrange equity release (lifetime mortgages) for eligible homeowners via Scottish Widows, a division of their parent company, Lloyds Bank plc. 

Is Halifax a good mortgage lender?

At the time of writing, Halifax has a star rating of 1.5/5 on reviews website TrustPilot, but has fared better on other online platforms and publications. They have an average rating of 3.93/5 on Smart Money People, based on 141 customer reviews, and Which? ranked them joint 14th out of 22 UK lenders with a score of 66%.

Pros and cons

The table below shows the advantages and disadvantages of Halifax as a mortgage lender to help you decide whether they are right for you:

Are they a strict lender?

Halifax are generally as a strict as other lenders on the high street with their mortgage criteria, but can be flexible with certain types of customers. For example, self-employed mortgage applicants can borrow based on 1 year's accounts, while at most lenders, the minimum requirement in two years. The can also be accomodating with customers who have modertely severe types of bad credit against their names, but keep in mind that specialist mortgage lenders are often better equipped to lend under these circumstances.

Common reasons Halifax reject a mortgage application

There are several reasons why Halifax might reject your mortgage application. Just because you've had a mortgage application declined in the past, doesn't mean you'll be declined the next time. However, the most common reasons for mortgage application rejections include:

1. Severe bad credit: Halifax is unable to approve applicants with issues such as bankruptcies and debt management plans unless they were settled at least six years ago. 

2. Affordability: They usually cap their maximum borrowing at 4.5 times the borrower's annual salary, which is a lower income multiple than some of their competitors

3. Not enough deposit: 95% LTV mortgages are typically reserved for borrowers who are applying through government schemes or taking out specialist products. If you are making a standard residential mortgage application with less than 10% deposit, Halifax might decline you.

If Halifax have declined you for a mortgage, get in touch. Our brokers can explore whether your application can be salvaged with them, and if that's not possible, they might be able to find you an alternative mortgage provider whose criteria is a better fit for you.

How to compare Halifax mortgage deals

The best way to compare Halifax's products is through a whole-of-market mortgage broker. They can provide you an overview of every Halifax mortgage product that you qualify for along with a comparison of equivalent deals from across the market.

You can view Halifax mortgage deals as well as potential alternatives from other lenders for free through Teito, and we have mortgage brokers on hand to make sure you secure the right mortgage for you, whether that's with Halifax or another mortgage provider who is a better fit for you.

Get started here to compare Halifax's mortgage rates with their competitors and take advantage of a free, no-obligation chat with one of our mortgage brokers.