Big news from Halifax! In a somewhat unexpected move from one of the biggest lenders in the UK mortgage market, Halifax has just announced a major upgrade to its mortgage income criteria, making it easier for people with bonus income or NHS overtime to qualify for a mortgage. Shared with the our expert advisors at Oportfolio Mortgages this morning, these changes are designed to improve affordability assessments and open the door to better mortgage deals for hardworking professionals who have previously been overlooked by rigid lending policies.
Changes to Halifax Mortgage Income Criteria
This latest enhancement focuses on two key applicant groups:
- Customers who receive bonuses and have recently changed employer
- NHS workers undertaking specific types of overtime
Bonus Income from Previous Employers Now Considered
Previously, Halifax only included bonus income from the latest year’s earnings with the current employer, or the average of the last two years if both bonuses were received from the same employer. If the customer had changed jobs, the bonus from their previous employer was effectively excluded from the affordability calculation, often skewing results unfavourably.
Now, Halifax will accept bonus income from a previous employer when calculating the two-year average, provided the latest year’s bonus was paid by the current employer.
Example:
Current employer bonus (latest year): £50,000
Previous employer bonus (previous year): £40,000
New average considered: £45,000 (£50,000 + £40,000 ÷ 2)
Previously, only the £50,000 was counted, resulting in a £25,000 average after factoring in a zero for the prior year.
While the amount of bonus used in affordability remains capped at 60% to reflect income variability, the inclusion of prior employer data can significantly boost affordability assessments.
Overtime for NHS Workers Now More Inclusive
For NHS workers, Halifax has clarified and expanded its policy around the inclusion of specific overtime types:
- Waiting List Initiative (WLI): A centrally funded overtime scheme designed to reduce the backlog of operations.
- Additional Programme Activity (APA): Pre-agreed overtime for additional work undertaken.
Both of these income types will now be accepted under Halifax’s overtime criteria, meaning more NHS staff could see an improved affordability calculation when applying for a mortgage.
There are no changes to the treatment of other NHS income such as additional duty hours (ADH), shift allowances, or traditional overtime, all of which continue to be assessed as before.
Expert Commentary
Commenting on the announcement, Louis Mason, Marketing and Communications Director at Oportfolio Mortgages, said:
“This is a welcome and progressive update from Halifax. For too long, applicants who changed jobs or NHS workers with complex income structures have been unfairly disadvantaged. This change will offer a more realistic view of applicants’ true earning potential, especially in high-pressure sectors like healthcare where flexible work is common. We’re pleased to see Halifax leading the way in making mortgage lending more inclusive.”
What This Means for Mortgage Applicants
Whether you’re a professional earning regular bonuses or a dedicated NHS worker juggling multiple roles, these Halifax mortgage income criteria updates could significantly improve your mortgage affordability calculation. More flexible income recognition opens doors for those previously limited by outdated lending models.
Contact Oportfolio Mortgages Today
If you’re considering a mortgage application and think these changes might benefit you, get in touch with Oportfolio Mortgages today. Our experienced advisors will assess your unique circumstances and help you find the best Halifax mortgage deal to suit your needs.
