Brokers criticise the Halifax: ‘What a slap in the face to those in need’

From Monday 18 March, Halifax has announced that “the maximum working age will change on certain applications where specific criteria is [sic] met.

We will continue to support the majority of customers, subject to a successful application, with borrowing up to the age of 75. A maximum working age of 70 will apply to:

• Remortgage applications with any capital raising/additional borrowing
• Some purchase and remortgage applications because of the level of credit score achieved and overall credit profile.

Darryl Dhoffer adviser at The Mortgage Expert said, “This is outrageous. Halifax appears to be tightening the screws on the very borrowers who need them the most.

“Halifax is turning a blind eye to the struggles of average people. High mortgage rates and shorter terms are a recipe for disaster, pushing even more borrowers into debt and hardship.

“They only recently extended the term to 75, so to now reduce it back down to 70 seems a bit odd.

“And what’s this about ‘some’ applications passing a mystery credit score test? What kind of mixed message is that? Halifax needs to promote clear and fair lending practices, not create confusion like this.”

Stephen Perkins, managing director at Yellow Brick Mortgages said “This partial U-turn in policy from Halifax appears unfair and discriminatory.

“Halifax is basically going to force those with more moderate credit scores to have higher payments over shorter terms, putting their finances under greater stress.

“Very disappointing from the UKs largest mortgage lender. I do not see the relevance of someone’s credit score at application and their ability to work to 75 and service the mortgage payments in the distant future.”

Craig Fish, director at Lodestone Mortgages & Protection said, “What a slap in the face to those in need from the Halifax.

“When most lenders are adjusting their criteria to help more people, Halifax are adjusting theirs to help less, and more importantly to help less of those who need it the most.

“This is not what you would expect from such a large lender, who are already not in brokers’ good books due to their secretive rate setting policy when it comes to helping existing customers.

“This is going to tarnish the Halifax name even further. They are no longer the popular name on the high street they used to be.”