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If you’re reading this, the likelihood is you’re an existing Halifax mortgage customer whose mortgage product is due to expired in the not too distant future. The good news is you’ve come to the right place. This guide explains all you need to know about Halifax product transfers and the potential pros and cons of carrying out a rate switch with one of the UK’s biggest mortgage lenders.
Product transfer explained
A product transfer involves switching to a different product with the same lender. It’s typically a more streamlined process compared to remortgaging with a new lender and may involve less or no underwriting. While there are benefits to this option, it’s advisable to explore all your options with different lenders via a broker first to determine if a product transfer is the most suitable choice for you.
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Pros and cons of a product transfer
Here’s a breakdown of the pros and cons of doing a product transfer with Halifax:
Pros:
Quicker Process: Product transfers with Halifax are generally quicker compared to remortgaging or switching to a different lender. This means you can secure your new mortgage deal faster.
Streamlined Process: Product transfers usually require fewer documents compared to a full remortgage. This can save time and reduce paperwork.
No Credit Check: Since you’re staying with the same lender, Halifax typically doesn’t require a credit check for a product transfer. This can be beneficial if your credit situation has changed since you initially took out the mortgage.
No Solicitors: In many cases, product transfers with Halifax don’t require the involvement of solicitors. This can save on legal fees and streamline the process.
No Valuations: Halifax may not require a new property valuation for a product transfer, especially if you’re not borrowing additional funds. This saves time and potential costs associated with valuation fees.
Less/No Underwriting: Product transfers may involve less stringent underwriting compared to a new mortgage application. This can be advantageous if your financial circumstances have changed since you first obtained the mortgage.
Cons:
Lack of Options: One of the main drawbacks of doing a product transfer with Halifax is the potential lack of options. You may not find the most suitable products or get the best rates and terms available on the market by sticking with your current lender.
Limited Negotiation: Since you’re staying with the same lender, you have limited negotiation power compared to when you’re shopping around with different lenders. This means you may not be able to negotiate as favourable terms as you could with a new lender.
Possibly Higher Rates: Without exploring options from other lenders, you may end up with a higher interest rate or less favourable terms compared to what you could secure elsewhere.
Restrictions: Halifax’s product transfer options may come with certain restrictions or limitations that could impact your ability to find the most suitable mortgage deal for your needs.
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Product transfer process
The Halifax product transfer process typically follows these steps:
Gather Documents: Collect any necessary documents required for the product transfer process. This may include identification, proof of income, and details about your current mortgage.
Book in with a Mortgage Broker: While it’s not always necessary, you may choose to work with a mortgage broker to assist you with the product transfer process. They can help you navigate options and ensure you’re getting the best deal.
Review Options: Once you’re ready to proceed, review the product transfer options available to you with Halifax. This may involve looking at different interest rates, terms, and features to find the most suitable option for your needs.
Choose Rate and Mortgage Offer: After reviewing your options, select the interest rate and mortgage product that best fits your requirements. Once you’ve made your decision, Halifax will typically issue a mortgage offer within one day.
Effective Date: Your chosen mortgage deal will take effect either when your current mortgage product ends or sooner if you prefer. Halifax will guide you through the process of transitioning to the new mortgage terms seamlessly.
By following these steps, you can efficiently complete a product transfer with Halifax, ensuring that you secure the most suitable mortgage deal for your circumstances.
Halifax product transfer rates
Halifax generally offer 2 or 5 year fixed rates to existing customers along with 2 year trackers, the range is usually more limited than the products available to new clients. They offer products with/ without fees. If you opt for a product with a fee, they can usually be added the mortgage with interest charged.
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How long does a Halifax product transfer take?
Once you’ve applied, the process is pretty quick, mortgage offers are usually offered instantly and your rate will either take effect from the following month or your product end date, whichever you prefer. If you are switching your rate and borrowing additionally or changing other terms, for example switching to interest only, it may take longer to allow for additional checks and underwriting
Can I borrow extra money?
Yes, subject to affordability & criteria, Halifax consider lending up to 85% of the property value for existing Halifax residential mortgage customers. They generally lend between 4.5 – 5 times income, although up to 5.5 x is possible for some high earners.
Do I need payslips for a Halifax product transfer?
Potentially not, if you are looking to keep your mortgage terms the same and not borrow additionally, in some instances they may not be required, although it’s worth gathering them in readiness (Fore employed borrowers)
Does a product transfer involve a credit check?
If you’re looking to keep the same terms, e.g borrowing amount, term & repayment type and only want to change the rate, it will not usually involve a credit check. Any of the aforementioned changes would potentially result in a credit check.
When to choose a new Halifax product transfer rate ?
You can reserve a new rate up to 6 months in advance of your current rate ending.
Halifax product transfer cancellation
You can usually easily cancel your rate all the way up until the last month prior to completion of your new deal. While it’s possible to do beyond this, the process is a little more drawn out if you leave to within the last 28 days of completion.
How can a broker help?
Strive Mortgages can review all your options, both with the Halifax and the whole of the market, we can let you know if there are any other better options with other lenders or if staying with the Halifax is indeed your best option. Either way, we can help you process your application and take care of things. If you’re interested in knowing your options, please get in touch, we would love to hear from you.
Contact us today, and we’ll work hard on your behalf to find you a competitive mortgage.
For more information, please contact a member of the Strive team, by emailing [email protected] or call us on 01273 002697.
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