Halifax adjusts LTIs for lower incomes and self-employed

Essex Home Finance
Halifax is changing some of the loan to income limits in its affordability calculations as of today.
The latest Finance and Property News2

Halifax is changing some of the loan to income limits in its affordability calculations as of today.

The less than £25,000 income tier, which allows for up to 4.49 times loan to income, has been extended to incomes of less than £30,000.

The lender is also making a temporary change to applications with any element of self-employed income, these will now be subject to a maximum LTI of 4.49.

Halifax says the change gives it short term flexibility on products and service levels and that the move will be regularly reviewed.

The above changes apply to all new applications started from 7 January and do not apply to any applications started before this date.

The Halifax Intermediaries website affordability calculator will include a new question: ‘Does any applicant have any self-employed income?’ to ensure the correct LTI is applied to the affordability result.

No other LTI limits are being changed.

Original Article from Mortgage Strategy 06/01/2021

Get In touch

Leave this field blank
Mobile / Home Number
Please choose the closest match to your Mortgage Needs
  • Choose
  • First Time Buyer
  • Help To Buy
  • Homemover
  • Remortgage
  • Buy to Let
  • Equity Release
  • Insurance
  • Home Utilities
  • Nothing found
Essex Home Finance

(01245) 398466

Call Anytime

Address : 8 Kingsdale Business Centre, Regina Road, Chelsmford, Essex, CM1 1PE

Essex Home Finance Ltd is an Appointed Representative of Mortgage Intelligence Ltd which is authorised and regulated by the Financial Conduct Authority under number 305330 in respect of mortgage, insurance and consumer credit mediation activities only.

Registered address: 1 High Street, Chelmsford, Essex, CM1 1BE.

Registered in England & Wales under number 10607263.

Your home may be repossessed if you do not keep up repayments on your mortgage.

We do not charge for Residential First Time Buyers, Residential Home Movers, Residential Remortgage, and all Product Transfers (Residential or Buy to Let).

There will be a fee for all Buy to Let Purchase and Buy to Let Remortgage cases. Typically our fee will be £149, payable on Offer. We will agree any fees with you before we proceed with your case.

There will be a fee for all Equity Release Mortgage cases. Typically our fee will be £695, payable on Offer. We will agree any fees with you before we proceed with your case.

We always aim to provide a high quality service to our customers. However, if you encounter any problems and we are unable to resolve them you can take your complaint to an independent Ombudsman. 

Our advice is covered under the Financial Ombudsman Service.  You may be able to submit a claim through the  EU Online Dispute Resolution Platform If you live outside the United Kingdom or if you prefer not to deal directly with the Financial Ombudsman Service.