If you have a Halifax mortgage and want to borrow more, you may be eligible for a Halifax home loan. This allows you to take out a separate secured loan on top of your existing mortgage so you can increase your borrowing at an affordable rate without needing to remortgage.
Home loans are often used to make home improvements, but can also be used for purposes such as buying a new car or consolidating debts. It is important to think carefully before securing an additional loan against your home, however, as failure to repay could put your home at risk.
Can you get a Halifax home loan?
In order to be eligible for a Halifax home loan you will need to meet certain criteria, such as:
- Minimum borrowing of £10,000
- You must have had a Halifax mortgage for at least six months
- All repayments must be made on time for the three months before you apply for the loan
- Additional borrowing is subject to affordability and credit checks
Benefits of a Halifax home loan
If you take out a home loan with Halifax, you could benefit from:
- No arrangement fee
- Borrowing up to 80% of the value of your property (terms and conditions apply)
- Extended repayment period – repay the loan as you repay your mortgage
How much will a Halifax home loan cost?
When thinking about how much it will cost to take out a Halifax home long, the main consideration is your monthly repayments. These will be determined by what interest rate you pay, which is influenced by a number of factors. Ultimately your interest rates will be a reflection of how risky your lender thinks it will be to give you a loan.
Lenders decide the likely risk of a particular borrower defaulting on their debt by looking at various factors. These include:
- How much you borrow – The bigger the loan, the higher the risk
- The length of the loan term – The longer the borrower has the loan, the more risk to the lender
- Loan to value – The larger your loan, relative to the value of your property, the more risk there is of defaulting
- Credit history – If a borrower has a history of not paying their debts, they will be seen as much more of a risk
These risk factors will be similar for any type of loan, but one of the advantages of a secured home loan is that using your property as security means the overall risk to the lender is lower. This means they will be more likely to lend, even to those with a bad credit score.
Compare Halifax home loans
When considering a secured home loan with Halifax or any other lender, it is highly recommended that you look around and see what other options there are on the market. This means you can be confident that you are getting the best interest rates and other loan conditions possible for the amount you need to borrow.
Our home loan comparison tool, found at the top of the page, makes this process much simpler. You can see all the latest and best deals on homeowner loans that we have selected from across the market, allowing you to find the best value deal for you.