How strict are Halifax as a mortgage lender? All high street mortgage lenders are strict in the sense that they're likely to reject an application that falls outside of their lending criteria. That said, Halifax are known to cater for first-time buyers, low-income customers and even people with certain credit issues.
The length of the mortgage application process can take anything from one to six weeks.
For example, mainstream mortgage lenders Halifax and Santander have recently confirmed that they do not ask to see bank statements as part of standard mortgage applications. But they have a number of other tools to assess a customer's creditworthiness and financial history.
Your Credit Score is a free service provided by Halifax. We've partnered with TransUnion, a credit reference agency, to provide you with access to your credit information which includes your credit score as well as factors that help you understand what is impacting it. Why should I use Your Credit Score?
mortgage application after we have made you a mortgage offer, you will need to speak to your Mortgage Adviser again. You won't be able to complete the purchase of your new property until we have confirmed we can make you a new mortgage offer.
The answer is yes. Lenders pull borrowers' credit at the beginning of the approval process, and then again just prior to closing.
Proof of employment
When someone is applying for a mortgage the lender will ask them for their employer's contact details. The lender will then phone or email the employer and ask to verify the applicant's claimed salary and other financial details including bonuses.
Mortgage lenders tend to run an initial soft search against your file (where they can see bits of information) followed by a hard credit check to assess your financial history in order to see whether you meet their eligibility and affordability criteria.
A credit score of 721-880 is considered fair. A score of 881-960 is considered good. A score of 961-999 is considered excellent (reference: https://www.experian.co.uk/consumer/guides/good-credit-score.html). TransUnion (formerly known as Callcredit) is the UK's second largest CRA, and has scores ranging from 0-710.
Halifax credit checker uses financial data from TransUnion in official reports. TransUnion is one of the larger credit reporting agencies and they claim to keep financial records for over 1 billion people.
How strict are Halifax as a mortgage lender? All high street mortgage lenders are strict in the sense that they're likely to reject an application that falls outside of their lending criteria. That said, Halifax are known to cater for first-time buyers, low-income customers and even people with certain credit issues.
Mortgage lenders will often look at your spending habits to determine if you are a responsible borrower. They will look at things like how much you spend on credit cards, how much you spend on groceries, and how much you spend on entertainment.
Whilst the typical borrower can expect to be offered between 4 and 4.5 times their salary, it's possible to find lenders willing to offer more than that.
Halifax for Intermediaries has announced changes to its mortgage income multiples and the addition of a 5.5 times salary band for higher earners.
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Halifax Home Insurance Select underwritten by Lloyds Bank General Insurance Limited. Halifax is a division of Bank of Scotland plc.
Mortgage declined after agreement in principle
If this happens, it's often because the lender found something that didn't meet their criteria when they did a full search of your information. You may be able to find out what it is by asking the lender.
People often ask 'what credit score do I need for a mortgage? ' If you have a credit score between 561 and 720 with Experian (the UK's largest credit reference agency), this is considered a poorer credit score than normal. With this Experian credit score you can get mortgages.
The higher the score, the lower a risk the credit reference agency is assessing you as. 999 is the maximum, anything from 881 is good, anything between 71-880 is fair, below that is poor.
With Equifax, scores generally run from 300 to 700 with anything over 420 considered good. Our Credit Monitor service uses credit information from TransUnion, where scores range from 0 to 710 and a very good score would be anything from 604 and above.
How far back do mortgage lenders look at bank statements? Generally, mortgage lenders require the last 60 days of bank statements. To learn more about the documentation required to apply for a home loan, contact a loan officer today.
Your Mortgage Broker and Lenders usually ask for statements dating back to around 3 months, so even if your current statements could present issues, you can get your accounts tidied and increase your chances in the near future.
During your home loan process, lenders typically look at two months of recent bank statements. You need to provide bank statements for any accounts holding funds you'll use to qualify for the loan, including money market, checking, and savings accounts.
Do mortgage companies check your details with HMRC? Yes, they can. The HMRC Mortgage Verification Scheme is being used more and more by lenders. The scheme aims to tackle mortgage fraud by allowing lenders to contact HMRC and check if the numbers on your application match their records.
Until your house purchase goes through, your mortgage offer could technically still be withdrawn if your circumstances change. Basically, your lender has offered you a mortgage based on what they know about you, your income and the property you're buying. If any of these things vary, this could invalidate the offer.
your last three months' payslips. passport or driving licence (to prove your identity) bank statements of your current account for the last three to six months. statement of two to three years' accounts from an accountant if self-employed.