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Halifax pulls out of self-build mortgages

Halifax 480

Halifax is pulling out of self-build mortgages due to lack of demand but Lloyds Banking Group will still offer deals through BM Solutions via brokers.

The decision is partly due to a lack of activity in Halifax branches, meaning staff typically only sell one deal every three years. Self-build lending accounts for roughly 1 per cent of Lloyds’ total mortgage lending.

The news comes just days after Halifax axed 170 branch jobs as part of a company-wide cost-cutting programme which started 18 months ago.

A Lloyds spokeswoman says: “The requirements for self-build/building lending can be complex; therefore we have decided to streamline and focus our approach in this sector.

“This will not impact on the amount of self-build lending we do across the group, but managing it through one brand will allow us to offer a more focused proposition.

“BM Solutions has a specialist self-build team with the extensive knowledge and expertise to guide customers and brokers through the process.”

There are three products currently available through BM Solutions up to 75 per cent LTV. All are available to borrowers with full verified income status and include a £500 cashback and a 1.25 per cent fee.

The first is a two-year fixed rate at 5.59 per cent and two and three year trackers at 4.89 per cent.

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  1. No mention of the fact the deals from BM Solutions are typically 2% dearer than the Halifax product!

    Streamline should probably read “staff unable to understand the complexity of self build mortgages and we are not prepared to invest in our staff.”

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