Halifax loans is a bank that offers loans to its customers, while the loans are available to anyone and you don’t have to be a customer of the bank to receive them, they do reward their existing customers who already have an account with them.
The bank was built in 1853 and has been in the banking game for quite a long time. It eventually grew to the largest company in the UK in 1913. It continued to prosper and maintained this position within the UK.
In 1997, when it was demutualised, it became Halifax plc. The name was based on the town in West Yorkshire of the same name. It is a part of the Lloyds banking group and an established and well-known bank in the U.K. it operates as the trading division of Bank of Scotland.
Buildings societies like Halifax tend to be better for the consumer than an average bank. This is because they can give more value to their customers by not having to give anything to shareholders. This way they can charge lesser interest rates on loans and can provide higher interest rates on the savings account.
Halifax gives long term loans of high value from anywhere between £1000 to £25000 for 1-7 years. If you have a good credit score bank loans like Halifax, provide one of the lowest interest rates on the market especially if you have an existing account with their bank. You can get large amounts of money, and the terms of the loan are usually flexible to suit your lifestyle and needs.
Types Of Loans
Halifax loans offer a lot of types of loans for every user from car loans to home improvement you can probably get whatever type to want from them. They also have 2 distinct types of loans they actually offer one being an online loan and the other being clarity loan.
The online loans for people who find it easier to fill an application online and have online banking.
The clarity loans are for those people however who find applying online way to tedious and difficult to understand and would much rather go in person to apply.
Both the types of loans have their own benefits like early repayment without charge or accesses and managing your account easily without hassle. So there is a lot of consideration when choosing between these 2 loans.
How It Works
When applying online, you visit their website and receive 2 different options, one if you already have an account with Halifax and the other if you don’t already have an account.
If you already have an account, you can apply for up to a £50000 loan which is an added benefit for existing customers. With your online banking then you can also get your quote in as less as a minute.
And you can get a quote as many times as you want because it doesn’t show up in your credit history, this means that even if you get rejected or are not applicable for a certain amount of loan you still have the freedom to apply as it does not hurt your credit score.
With already having a Halifax banking account if you get selected, you can get the money in your bank account directly within minutes. Even if you don’t have an already existing Halifax account, you can still apply to get a loan.
You can avail up to a £25,000 loan which is much greater than other companies, and even if you don’t get a decision in a min, you can get one in 10 min which is much better than waiting days to get one. If you are approved for your loan, you can get your money within 5 working days.
For your already existing bank account, the application process is very simple as it can get most of your personal information and account details from the bank account forms. If you don’t have an already existing account, there are some details that you will have to give them.
Which includes your address for the last 3 years, if you are employed, they will ask for your employment details such as a payslip etc. Your monthly income and outgoing will also be needed to make sure you are able to afford the loan. Since you don’t have a bank account, they will need the details of any UK bank that you own or the building society account that you may use.
How To Apply
When applying online, you will also need to confirm your identity; this helps them against identity theft and fraud. You need a photographed U.K driving license or a passport with are still valid.
If you don’t have an official driving license and provisional one will work as well. You will also need a device you can take and import the picture with a smartphone or tablet with a decent camera to get a clear picture would be best.
And lastly a pen and paper in case they tell to write and photograph it for security purposes. What is important to note when sending your details are that they should match the ones you are filling out in your application, your passport or Id should contain your full name and if it is a driving license your address on both should match.
The ID should be sent to them within 28 days if you are unable to provide the photographic Id within the deadline you would have to start a new application after 60 days have passed. With this, they might not be able to offer you the same terms as you had agreed to before so you should really try to collect and update all your documents before applying.
Eligibility To Apply
- You must be 18 or older to apply for a loan. You are not a legal citizen before that so you would need your parent’s permission and their details.
- You have to be a resident of the U.K as the bank is only situated in the U.K and the services they provide are only available to them this also do not include the Isle of Man and the Channel Islands.
- You must be an employee or have a source of income; this ensures that you generate income which could be used to make the repayments
- You also cannot be a full-time student. If you are a full-time student that means you cannot work full time and thus do not have a steady income.
- You must not have been declined credit in the last month. They are allowing you to be financially secure at that point to pay back that loan.
- Halifax usually offers these loans to people with good credit so you cannot have a history of bad credit in the past as that would hurt your overall rating and affect the result of this loan.
- Repayment holidays are also available to some people although not to everyone you can get some in certain situations and if you meet certain criteria. You can apply for 2 of these in a year.
- They do not charge you anything for additional payments. So you can make payments for a couple of months at once if you have the money available to ease the load off for the future.
- They offer loads of way to manage your account to match your feasibility. You can do it online if you find talking to people annoying. You can do it over the phone for some assistance, and if you don’t understand at all you can go down to a branch, and they will help you with the entire process.
- The whole process of applying for a loan is quick and easy with fixed monthly payments, so you don’t have a problem budgeting and know how much you will have to pay each month.
- They have a representative APR of 3.5% which applies to a loan of £7500 to £25000 and have a fixed interest rate of 3.45% which is much lower than its competitors. It is winning the competitive market compared to other banks who have the same criteria but with higher APR and interest rates.
- Interest will be charged even if you take a payment holiday. This means that you will have to pay more interest on the money and your overall term of the loan will be increased.
- They do charge you for early settlements. So if you do decide to make a partial settlement or a full settlement of your loan you would have to pay extra. They can charge you up to 58 days worth of interest in making the settlement
When Will I Have To Make The First Repayment?
Your first payment will be due after the first month from taking the loan. If there is a bank holiday or weekend, the date will be the following day. You can also choose a monthly repayment which could be 9 days following the loans so the 1st payment will be due on the day the following month.
What Is Credit Scoring And How Do You Use It?
Credit scoring is a technique used by lenders and many other companies to decide if they will allow if you can be lent the money. They score you based on the information you provided in the application as well as other information through your employment history and how your other accounts with them have been managed.
They also use information from credit reference agencies like Experian, Equifax or Callcredit who keep track of your borrowing and payment habits. This information also includes how much outstanding loan you might already have.
If you have missed a bunch of payments of have given late payments you are considered high risk which means your loan application might be rejected or you might receive a loan at a higher interest rate.
Can I Have A Top-Up Loan?
Yes, you are allowed a top-up loan at any point. There are 2 ways that you can do that. You can take out a separate loan that you will make separate payments to align with your existing loan, or you can close and replace your existing loan with a new larger one.
While this means you’ll only have one larger payment, it also means that the interest rate will be higher or that you will have to make payments for a longer period of time so the overall interest will increase.
What If I Need More Help?
If you need any additional help, you can contact them on 0345 720 3040. They are available Monday to Sunday from 8 am to 10pm, or you can write to them at Halifax Personal Loans Service Centre PO Box 43 Peterlee SR8 2RS.
You can visit your nearest branch of Halifax for any details, and they would be happy to guide you and help you out. If you are having trouble locating a branch, you can go online to the branch finder, enter the postal code, street and town and find a branch which is closest to you.
Halifax is one of the biggest names when it comes to borrowing a loan they are generally one of the safest bets when trying for a loan since their interest and APR rates are unbeatable and the convenience is an added bonus.
They do come with their issues as well since they are so well known they tend to choose people with higher credit ratings and if you have a bad rating well, then you’re out of luck.
They do have flexible loan terms so if you do get accepted to are getting a good deal. They may charge on early settlements, but the charge isn’t too bad that it would be a deal breaker and there is no charge on early additional repayments do there is a way around it, somewhat. If you have good credit that this is probably the best option for you.