From 7th January we will be changing some of the loan to income (LTI) limits applied within our affordability calculation.
We use an affordability model to calculate the maximum loan that is available on an application and LTI limits also apply.
The less than £25,000 income tier which has a maximum LTI of 4.49x is being extended to incomes of less than £30,000 to ensure we continue to lend responsibly to customers on lower incomes.
A temporary change is being made for applications with any element of self-employed income which will be subject to a maximum LTI of 4.49x. This change gives us short term flexibility on products and service levels and we will regularly review this.
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. A table showing all LTI’s is available in the Affordability & Sustainability section of our website Criteria.
If you have any queries please contact your Business Development Manager.
