Halifax enhances mortgage affordability assessments for medical professionals

Halifax Intermediaries has enhanced the way it assesses mortgage affordability for certain medical professionals, assessing their income "in a way that more accurately reflects their employment arrangements and earnings".

The changes apply to junior doctors, locum doctors and associate dentists on fixed/short-term contracts.

Under the current approach, these customers are typically assessed using contractor affordability calculations, which include a 46-week annualisation of income.

Following the changes, Halifax will now assess their income in line with permanent employees, rather than under its contractor policy, using 52 weeks of income instead of 46. 

For these professionals, contractor policy requirements for employment history and remaining contract length will no longer apply and income evidence requirements will match those for permanent employees, for example the latest month’s payslip or latest three months’ payslips.

The new approach aligns with Halifax & Lloyds’ treatment of nursing staff and is intended to better reflect the income profiles of many healthcare professionals whose earnings may not fit traditional contractor models.

The changes should simplify income assessment and may increase borrowing capacity for some eligible customers. 

In a note to brokers, Halifax said: "Some healthcare professionals face additional complexity when applying for a mortgage because their employment arrangements do not always fit conventional affordability models. By reflecting their earnings more accurately, we aim to remove potential barriers within the mortgage application process and support eligible healthcare workers seeking to purchase a home."