Secured Loans from Halifax

You may be qualified to apply for “additional borrowing” from Halifax if you already have an existing mortgage and you’re in need of some extra cash. This will mean taking out an extra loan on top of your existing mortgage, but it will be separate.

Since this new loan will be secured against your property, you’ll be eligible for far better rates and will be able to borrow greater amounts with a longer repayment period. You will always tend to get a better rate with a secured loan when compared to an unsecured loan as it brings in far more security for the lender. However, the rate still depends on a number of factors.

Your Loan-To-Value Ratio Will Determine Your Loan

How much you’re able to borrow with a secured loan will depend on the balance of your existing mortgage and the market value of your house. Halifax will assess this to determine your LTV ratio.

For an example, a lender may only be willing to let you borrow up to 70% of the value of your home (which is determined by them). This will mean if your house is worth £100,000, you’ll only be allowed to borrow up to £70,000 in total.

Most lenders will not be willing to offer you a loan if you go above an LTV ratio of 80%, and you’re far more likely to get a rate if your LTV is under 60%.

Benefits of Halifax Secured Loans

• Able to borrow up to an LTV ratio of 85% or 75% if the loan is interest-only
• No arrangement fees
• Able to make fixed monthly repayments

Restrictions on Halifax Secured Loans

• You must request a minimum loan of £10,000
• An existing mortgage with Halifax is required for at least 6 months.
• You must have kept up to date with mortgage payments for the previous 3 months.