Getting the best mortgage deal depends upon how much you know and how much you are prepared. The preparation depends upon knowing the task well; same is the case with a mortgage. Using different online mortgage sources to compare different deals may be a tedious task; therefore, you need the one that could serve you as an online guide to get the best mortgage deal. Here comes the role of a Halifax mortgage calculator that helps you view all the available mortgage deals instantly with least efforts. Halifax is a mortgage dedicated division of Bank of Scotland, approved by Prudential Regulation Authority and regulated by FCA or Financial Conduct Authority.
How much can I borrow for a mortgage? It is a very common question in mind of first-time mortgage borrower. As a thumb rule, you can borrow up to 85% of property value; the loan amount includes the existing mortgage and other debts. If you are applying for an interest-only mortgage, the maximum mortgage amount is 75% of the property value. To get an additional mortgage, the current Halifax mortgage should be more than 6 months old. All the repayments must have been made on a due date leaving nothing overdue.
The mortgage loan amount, you can get, also depends upon regular income. For example, if the annual income is £50,000, you can borrow 3 to 5 times of this amount; it means, you can get a mortgage loan up to £250,000. The commonly applied loan-to-income ratio is 4.5 times of income.
Getting a mortgage loan is no more a tedious task because of the thick presence of direct lenders lending online to crush the distances. The thumb rule to judge how much mortgage you can afford is - ‘The total monthly mortgage payment including principal, interest, tax, and insurance should not exceed 28 % of income. In parallel, you need to consider other aspects also like:
- Up-front cost including application fee and down payment
- Closing cost including attorney fee and escrow deposit
- On-going recurring expenses like property tax, insurance, repairing cost
Down payment varies from 0% to 20% or maybe more of the total property cost. The closing cost typically varies from 2% - 5% of the loan amount. Whatsoever mortgage loan you take, paying the bills consistently on time improves credit score.
Halifax, previously known as Halifax Building Society is a prestigious British bank; it has created numbers of online calculators to help the mortgage borrowers plan better by knowing the eligibility, affordability, and cost. The cost is the prime factor in decision making; it can turn the tables for mortgage borrowing in either way. The wide range of Halifax mortgage rates and deals provide affordable borrowing opportunity to almost any homeowner.
It allows its clients to switch over the deals, so that, they could save more. It also waives of early repayment fee on existing mortgage deals going to be completed in 3 months or less. The significant aspects of Halifax deals are:
- Loan to value (LTV) - 60-75%
- Early Repayment fee - 5% up to 31/07/2020, 4% up to 31/07/2021 and 3% up to 31/07/2023
- Mortgage rate varies in slabs of– up to £99,999, up to £100,000 and £249,999 and £250,000 and £7,500,000
- 2, 5 and 10 years fixed rate mortgage is available
- Minimum mortgage amount is £25,000
- Maximum Loan to Value (LTV) is 75%
- Mortgage prize draw can make the mortgage deal unexpectedly cheaper; apply up to 30th June 2019; Prize draw date is 15th October 2019
- £500 cashback is available on remortgage from other lenders
After agreeing to Halifax mortgage agreement, you will have to call on Halifax mortgage adviser who will help you complete the application online. You should have pay slips, bank statements, details of financial commitments, identity proof, address proof, details of property ready. You can apply for Halifax mortgage in person at any branch or over the phone. The categories to be explored before applying are:
1.Halifax mortgage for a home mover
2.Halifax mortgage for a first-time home buyer
3.Halifax mortgage for buy to let the buyer
4.Remortgaging
Concluding Note:
Halifax, winner of Best Overall Mortgage Lender award in 2017, is one of the largest mortgage lenders in the UK. Halifax mortgage rates and deals suit to a wider segment of British society but bad credit score often puts a barrier.
