Halifax

A wholly owned subsidiary of Lloyds Banking Group, Halifax was officially founded in the year 1852. One of the first true ‘building societies’ to open its doors in the UK, Halifax was established to help address the country’s severe housing shortage. Halifax now forms part of the Lloyds Banking Group, which employs more than 75,000 people, has over 30 million customers and is the UK’s leading provider of current accounts, savings, personal loans, credit cards and mortgages.

Financial Services Offered by Halifax

  • Bank Accounts
  • ISAs
  • Savings
  • Credit Cards
  • Loans
  • Car Finance
  • Mortgages
  • Insurance
  • Share Dealing
  • Investments
  • Travel

Bridging Loans from Halifax

Typically bridging loans are used for the purchase of a property. These loans are designed to help people who are moving house and who want to acquire a new property while their existing home is on the market. When equity happens to be locked up in a mortgage, a Halifax bridging loan may be appropriate to finance a property purchase. They can be especially valuable to property managers, people who are buying property at auction and developers.

Home-movers may want to use a bridging loan to avoid getting stuck in a property chain so that they can purchase a new property whilst waiting for a mortgage. Nonetheless, it is important that you bear in mind that obtaining bridging finance doesn’t guarantee you’ll obtain a mortgage in the future.

How Does a Bridging Loan Compare with a Regular Secured Loan?

Theoretically, they differ because bridging finance is used for short-term financing purposes only, whereas most other loans tend to be used for long-term financing. The speed of getting the cash transferred into your account is another major difference between these two loans. It can take weeks for high street lenders such as Barclays to complete a loan, however, bridging finance can be arranged in 1 to 2 days.

Interest Rates

How much will your bridging loan cost? Adding up the amount of the loan, interest and administration fees ought to give you a good insight on the costs involved.

How high are the interest rates? And which factors can influence the rate of interest you will be paying?

  • Loan size – Bigger loans usually have higher rates of interest due to the fact they pose a greater risk to the lender.
  • Repayment terms – If you have gone with a closed bridging loan and you have set a concrete date for repayment, the term of your loan might impact your interest rate – with longer loans subject to higher interest rates.
  • Close bridging loans vs. Open bridging loans – Closed bridging loans have a set repayment date, whilst open bridging loans don’t have to be repaid by a set date.
  • Property value – How much your security is valued at also affects the interest applied to your loan. Once more, the more risk lenders face, the higher the rate is going to be.

How to Apply for Halifax Bridging Finance

Having some security, such as a commercial property, land or residential property, and a reasonable credit history are the two things you will need before you make an application for a bridging loan. The next step involves filling out an online loan application.

With a bridging loan, the key things lenders look at for are the quality of exit strategy and value of the asset you’re offering as security. This is not cheap finance so you have to know how you’re getting out of before you get in.

Halifax Bridging Loan Calculator

Our calculator is fast and simple to use and is provided to illustrate interest charges and various other costs associated with bridging finance. There are numerous bridging finance companies who all charge a range of different interest rates along with a host of other charges. These charges differ considerably making it impossible to provide a bridging loan quoting system online that’s able to offer quotes for all circumstances. A bridging finance calculator is meant as a guide only. It is however based on the most popular bridging plans.

Charges

In addition to the interest you will need to pay a collection of different charges when you apply for a bridging loan, consisting of some of the following:

  • Valuation fees: Valuation fees cover the property surveyor’s costs for performing a valuation of your property.
  • Legal costs: This pays the solicitor and legal fees of the loan provider, normally legal feels tend to be charged at a set rate.
  • Introducer fees: If you use a broker, this pays for the broker’s work searching for a loan.
  • Arrangement or facility fee: The cost of setting up the bridging finance, approximately 1-2% of the loan.
  • Administration fees: The cost of the paperwork at the end of the loan term.
  • Exit fees: Roughly 1% of the loan – should you pay it back early. However, not all lenders charge this.

Commercial Loans from Halifax

Commercial finance is another term for business finance – it is lending created for commercial enterprises.

Commercial loans tend to be talked about in contrast to personal finance. There are several kinds of commercial finance. In the beginning, commercial finance would have come from banks.  However, nowadays a range of alternative finance options are available. Commercial finance in its most basic form is a commercial loan. You agree a repayment period, the rate of interest and an amount.

A commercial loan can either be unsecured or secured. Secured loans are generally less expensive since the lender is taking a lower risk, but you have to have an asset to use as security. An unsecured loan is useful for businesses that do not have enough assets to get a secured loan. A commercial loan can come from a number of sources. They’re supplied by mainstream banks, challenger banks and independent lenders. They may also be provided by peer-to-peer lending platforms.

Help-to-Buy Loans from Halifax

Help to Buy is a government scheme that can help first-time buyers purchase a property with an affordable 5% down payment.

Help to Buy Explained

There are two ways you can benefit from the Help to Buy scheme:

  • Equity loans – where the government gives existing homeowners’ and first-time buyers money to purchase a new build house.
  • Mortgage guarantee – where the government promises your lender it will cover part of any losses they might sustain if the mortgage isn’t being repaid

Homeowner Loans from Halifax

Lots of people need to take out a loan at some point in their lives, whether it’s to do something expensive like extend your house, to settle debts or to buy something that you cannot afford to purchase outright.

If you’ve got a mortgage or own your own property, getting a loan can often be easier and less expensive, and you may gain access to more money than a person who isn’t a homeowner. That’s because owning a home potentially gives you access to funds to pay the loan if needed.

Secured homeowner loan providers can offer you a secured against your home. You need to make repayments monthly during the term of the loan, which can be between 5 and 35 years.

Key points

  • In the majority of circumstances homeowner loans are repaid over 5 – 35 years.
  • The amount you can borrow, a term of the loan and rate of interest all depend on property equity, your credit rating and personal circumstances.
  • Rates are most likely to be more appealing than for an unsecured personal loan
  • A homeowner loan is secured against your house.

Career Development Loans from Halifax

Career and professional development loans are bank loans to pay for courses that help with your career or help get you a job. You may be able to borrow between £300 and £10,000. These loans are offered at a reduced rate of interest and the government pays interest while you are studying.

Who can apply?

To apply you need to:

  • Have been living in the UK for at least 3 years before your course starts.
  • Plan to work in the EU, EEA or United Kingdom after you’ve finished the course.
  • Be eighteen years old or over.
  • Be a British citizen.

Which courses qualify?

To qualify a course should:

  • Help with your job.
  • Be provided by an organisation on the Professional Career and Development Loan Register.
  • Last up to two years, or three years if the course includes a year of work experience.

Professional and Career Development Loans cannot be used for a first full-time degree but you can apply for a student loan if this applies to you.

Commercial Mortgages from Halifax

A commercial mortgage is used to buy business premises or to purchase a business. Commercial mortgage lenders normally require a deposit between 25% and 40% of the total value of your property and mortgage terms can run from one to forty years. Getting a commercial mortgage is based on the ability of your business to make honour the repayments.

You’ll also find that lenders will assess your business before quoting you an interest rate. They usually look at past performance, long-term future strategies and the current position. The interest you are given may be based on these factors and may be greater if the underwriter identifies higher risk in the proposal. You may have to offer a thorough business plan that shows that you are able to make payments, and a professional valuation is normally needed.

Mortgage Calculator

Before you apply for a mortgage use a mortgage calculator to get a good idea of how much you could apply for and how much your repayments might be. This applies to every kind of mortgage – including buy to let mortgages.

Loan Calculator

Whether you are planning to invest in a brand-new car, get a brand-new kitchen or consolidate debts, make sure you use a loan calculator before applying. You should use an online loan calculator to get a rough idea of how much you can apply for and what it will cost you each month to repay before applying for a loan.

Buy to Let Mortgages from Halifax

Halifax offers buy to let mortgages to allow their customers to be able to invest in property long-term so that they can continue to have a reliable income from the property in the future. To begin the process of applying for this type of loan, you can start the application either in person in a branch or over the phone. You will need to have proof of income and employment for the last 18 months, addresses for the last three years, and information regarding any of your other financial commitments. This will allow the mortgage advisor to determine if you are able to handle the commitment of a buy to let mortgage.

How to Pay for Your New Mortgage

Halifax offers help to determine if this is the right mortgage product for you and self-financing deals so that you won’t have to pay more than what you are making in income from the property each month. They will talk to you about charges and costs such as insurance and upkeep of the property so you can be sure that your rent will also cover these expenses. By advising you as to how much you can afford, these mortgage advisors make sure that you do not take on too much debt that you will be unable to handle.

How to Apply

While many of the financial products and services provided by Halifax can be applied for online, others require in-person meetings or telephone consultations. In any case, we can help you pinpoint and apply for the perfect product for your needs. Give a member of our customer support team a call today, or send us an email with an outline of your loan requirements.