Halifax Releases New Affordability Calculations
What do Halifax's new affordability calculations mean for you?
Halifax has recently made changes to their affordability calculations, with the aim of helping more people step onto (or move up) the property ladder.
They have reduced the stress rates used in standard affordability calculations and are offering enhanced affordability for select 5-year+ mortgage products and like-for-like re-mortgage applications.
What’s the impact?
Home buyers may now be able to borrow significantly more. For example, a typical household of 2 adults, 2 dependants, and a combined income of £75,000, could see their borrowing potential increase by as much as £38,000. This scenario assumes a 25% deposit, a 2-year product, and a 25-year term.
The move is expected to make homeownership more accessible and affordable, especially for families looking to purchase or refinance in today’s competitive market.
Want to know how much you can afford? Get in touch with our friendly team of mortgage advisers today.
