Halifax for intermediaries, the lending channel accessible only by mortgage brokers, have announced a new initiative to support mortgage applications for high net worth mortgages. Referred to as ‘premier customers’, mortgages for higher loans need extra care and support from start to finish as of course the lending risks are much higher with larger mortgages. That’s why this new support being offered is only available for applications advised on and submitted by professional high net worth mortgage brokers. Oportfolio being one of these brokers.
High Net Worth Mortgages Between £500,000 and £5,000,000
Halifax for intermediaries has a dedicated premier team to assess, provide and support mortgages that are applied for ranging from a minimum of £500,000 all the way up to £5,000,000. Because of the high level of borrowing and the significant risks that come with lending this money, the Halifax premier team completes a pre-submission service, a more in-depth decision in principle, that carefully assesses the case prior to submission and lets you know immediately whether the application will be proceedable.
Once the initial pre-submission assessment has taken place and things are ok to proceed, the Halifax Intermediaries premier team will provide mortgage brokers with a direct phone number and email address for a dedicated Premier Case Manager who will be in constant contact throughout the process. Available to give updates regularly and help with any questions or queries along the way.
Changes Made By Halifax To Support High Net Worth Mortgages
Along with their announcement of more dedicated support team interactions for high loan mortgages, Halifax have also announced that they have made the following changes to their high loan criteria:
- Removed the cap for high earning, low LTV self-employed customers so they benefit from the standard LTI cap of 5.5 (up from 4.49), boosting their borrowing power. That means that self employed borrowers with high incomes but looking for lower loan to value mortgages can borrow much more than they previously were allowed to. For example – Someone who earns £170,000 a year self employed with a property valued at £3,000,000 looking to borrow 30% LTV would have previously only been able to borrow £760,000 when they need £900,000. However, with the new changes, they should be able to borrow up to £935,000 subject to full application.
- Increased maximum LTVs from 80 per cent to 85 per cent on loans between £1,000,001 to £2,000,000, and from 70 per cent to 75 per cent for loan amounts from £2,000,001 to £5,000,000. Halifax Intermediaries will lend up to 85 per cent from £750,000 to £1,000,000, up to 90 per cent up to £750,000, and up to 95 per cent on loans up to £570,000. This means that high earners looking to get large mortgages with lower deposits can do so more easily.
- Reduced the qualifying income required on interest-only borrowing for Sale of Mortgaged Property (SOMP), bonus and cash repayment plans, to £75,000 for sole applicants and £100,000 for joint income.
- Changed ‘Sale of Mortgaged Property’ criteria, so this option is available to more customers. The maximum LTV on interest-only with sale of mortgaged property has been increased to 75 per cent.
Speak To a High Net Worth Mortgage Advisor
If you are looking for a mortgage of £500,000 or higher, you need to speak to a specialist mortgage advisor like Oportfolio. Arranging large loans that are beneficial and competitive is a very delicate process that needs to be handled by an expert. Call our team today or send us a message to see how our London mortgage brokers can help you to get a high loan mortgage today.