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Halifax to cap lending at 4.75 times income

Halifax-Bank-Branch-Building-700x450.jpgHalifax is changing its income multiple caps from five times sole and 4.5 times joint incomes to a flat 4.75 times sole or joint incomes.

For loans over £500,000 the income multiple cap will remain at four times income.

The cap for Help to Buy Mortgage Guarantee (including shared ownership, shared equity and Help to Buy Equity Share) applications remains at 4.5 times income.

Early this week Santander revealed it would be introducing maximum income multiples of 4.49x to 4.45x for first-time buyers, regardless of LTV, and for those borrowing over 90 per cent LTV.

It will also have minimum income requirements for interest-only mortgages.

From 23 November, single applicants will need a minimum gross income of £50,000 whereas joint applicants will need a minimum gross income of £70,000. The lender will allow a mixture of primary and secondary incomes.

The change does not apply to existing Santander mortgage customers as long as they do not wish to borrow more.



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Lifetime lease purchase deals involve raising finance but not on current properties. Rather, they are taken out when consumers move home. They are called lifetime lease schemes. Although not identical to sell-and-rent-back options, they are unregulated too. Lifetime leases are designed for clients who want to move but either cannot afford to or don’t want […]


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In the context of the current housing deficit, the latest housebuilding stats aren’t great. But what does doing better look like? The Department for Communities & Local Government published its latest figures at the end of August, which revealed that housebuilding starts in England rose 2 per cent in Q2 compared to the previous quarter […]


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