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Index Profit Share Mortgage Range

Profit share linked to the Halifax House Price Index

The Index Profit Share mortgage is designed for:

* Subject to CCA exemptions

How It Works

Like all equity share products, there are no monthly payments - so, no cashflow strain.

Instead, at redemption, clients will repay the initial loan plus a profit share which is linked to any growth in the Halifax House Price Index (subject to a Minimum Repayment Amount).

You can see an example of how this works below (see Repayment section).

Product Overview

  Option One Option Two
Profit Share (1 x % growth in Halifax House Price Index) x loan PLUS 5% p.a. fixed rate (2 x % growth in Halifax House Price Index) x loan
Max LTV with Lender 50% LTV 25% LTV
Max Combined LTV Commonly 77% LTV (1) Commonly 77% LTV (1)
Loan Term 2 to 5 Years
ERCs 1 Year
5%
2 Years
5%/5%
Arrangement Fee 2%
Age Limits Minimum: 21
Maximum: None
Min Loan Size £15,000
Subject to a minimum of 10% LTV
Min Property Value £100,000 for BTL properties
£250,000 for Owner Occupied properties
Charge 1st charge and 2nd charge on BTL
2nd charge only on Owner Occupied properties
Minimum Repayment Amount 2% p.a.
(simple)
5% p.a.
(simple)

Repayment

There are no monthly payments - no principal and no interest. Instead, clients repay the initial loan plus an amount linked to the growth in the Halifax House Price Index subject to the Minimum Repayment Amount.

Option 1

(1 x % growth in Halifax House Price Index) x loan PLUS 5% p.a. fixed rate**

Property value = £500k
Loan size = £100k (20% LTV)

Index increases by 30% over 5 years

Repay initial loan size: £100k
+
Profit share (30% x £100k): £30k +
Interest element**: £28,336

Total repayment: £158,336

Option 2

(2 x % growth in Halifax House Price Index) x loan

Property value = £500k
Loan size = £100k (20% LTV)

Index increases by 30% over 5 years

Repay initial loan size: £100k
+
Profit share (2 x 30% x £100k): £60k

Total repayment: £160,000

** Interest is calculated daily, compounded monthly

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