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Do I Qualify For The Halifax Retirement Home Plan?

By Mark Gregory on the 1st August 2010

A unique, yet largely unknown equity release product – the Halifax Retirement Home Plan is increasingly being recognised as the answer to a financially secure retirement for the over 60's.

Here we explain the process which leads to identifying whether you qualify for the Halifax Retirement Home Plan.

Unavailable through the Halifax branch network, this lifetime mortgage can only be recommended by suitably qualified lifetime mortgage advisers such as Equity Release Supermarket.

Using their experience & knowledge, they are required discuss your objectives & using their independent financial status, can research the whole of the mortgage market to find the best deal for you.

Initially, the adviser will gather all relevant information necessary to understand your current situation including: -

  • Applicants – Age & income
  • Liabilities including mortgage, loans & credit cards
  • Mortgage requirements – amount & type of product
  • Credit history

This information will enable the adviser to calculate whether you will qualify for the mortgage required.

Prior to this he will provide a key facts illustration (KFI) which outlines the particular product you are looking to apply for & explains its costs & features.

The basis of qualification initially is the Halifax Retirement Home Plan calculator, which acts as a guide as to whether the case qualifies on an affordability level.

This will take into account total incomes including: -

  • State pensions
  • Occupational & private pensions
  • Rental income
  • Pension credit
  • Disability living allowance (60%)
  • Carers allowance (60%)

At the same time it will also need any outstanding monthly liabilities including: -

  • Mortgage & other secured loans
  • Personal loans & hire purchase agreements
  • Credit cards

Using this data & assuming a credit worthiness commensurate with the applicants previous repayment history, the Halifax Retirement Home Plan calculator will advise a recommended mortgage figure.

As this product is only available to people already retired, the Halifax Retirement Home Plan will not take into account employed or self employed incomes.

The scheme is not designed for people under age 65 & having earned income.

*However, the Halifax Retirement Home Plan does have flexibility on these issues, so always check eligibility first with Equity Release Supermarket on 0800 678 5159.

Subject to the calculator confirming sufficient capital can be raised, then the next steps can be taken…

This would involve the Equity Release Supermarket adviser completing a ‘decision in principle’ with Halifax. This is a means of ‘dipping your toe’ in the water to ascertain whether in principle the application can be acceptable to the Halifax.

Details required are name, address, income, existing liabilities, mortgage amount & the product required e.g. tracker or fixed rate?

Upon submission of this information Halifax will assess this & credit score & complete a credit check on the applicant(s).

An online decision will be made by Halifax as to whether a full application can then be completed.

If successful, then conversion from decision in principle to full application can be made.

From there the payment of any fees are made with the valuation & solicitors then being instructed by Halifax & the case can continue to successful completion.

All processing is now undertaken on the new Halifax online mortgage application system, which provides instant feedback on case criteria. This has improved processing times.

Completion times for the Halifax Retirement Home Plan are now ranging from application to receipt of funds of between 3-4 weeks.

If you have any further questions regarding eligibility on this or other equity release schemes, please contact Mark on 0800 678 5159 or email

For additional information on the Halifax Retirement Home Plan & rates available visit our compare deals table here.

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Tags: Halifax Retirement Home Plan Calculator, Decision in Principle, KFI, Lifetime Mortgage Advisers, Lifetime Mortgage, Halifax, Key Facts Illustration, Halifax Retirement Home Plan

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