Halifax has done some significant changes and modifications to this new version of the product, to address the concerns of brokers and customers. The lender has expanded its list of acceptable foreign currencies, now recognizing income in five additional currencies: US dollars, euros, Australian dollars, Indian rupees and Swiss francs. This change is expected to open up the possibility of a mortgage or remortgage with Halifax to the international applicant base.

When applying, Halifax will exchange your salary, bonuses, overtime and commission from such non-GBP currencies. To cater for the win of decennial exchange rate changes, the converted income amount is subjected to a standard deduction of 20 percent. However, for bonus income, this ‘haircut’ is somewhat lower, at 10%. Another benefit of taking a foreign currency mortgage is that it allows your affordability to be tested with a bit of a buffer against exchange rate fluctuations.

For income verification, if the ‘payslip’ indicates your salary in the local currency, then it is adequate. Of course, if payslip displays income in £GBP then your broker should provide other proof of earnings like a compensation letter or remuneration statement accompanied with payslip for the converted amount. This added step is to make sure that the assessment process is transparent and as accurate as possible.

In the case of Halifax at the time it launched its online affordability tool, use of non-sterling income is currently not supported. It may be something to think about if you may be uploading your teaching or materials to their resources in your first weeks.
In addition to these changes, Halifax is also refining how it handles shared ownership applications. The lender is now incorporating the actual rental payments you’re making, rather than relying on assumed figures, in their affordability calculations for both decisions in principle (DIP) and full applications. This adjustment is designed to provide a more accurate reflection of your financial situation, simplifying the application process and giving you a clearer idea of the loan amount you’re eligible for. This move is part of Halifax’s broader commitment to supporting the shared ownership market, which plays a crucial role in making homeownership more accessible.

Moreover, Halifax will require proof of the shared ownership rental amount, which should be included in the key information document or memorandum of sale. This ensures that all the necessary details are documented, making the application process smoother and more transparent for everyone involved.