Halifax brand to be scrapped after 173 years: what it means for you

Halifax brand to be scrapped after 173 years: what it means for you

Lloyds Banking Group has announced it will retire the Halifax brand after 173 years. The news has caused concern among Halifax customers, especially those with mortgages, savings, or debt products. However, Lloyds says it remains committed to the town of Halifax and that very little will change for customers day-to-day.

If you have a Halifax mortgage, credit card, or loan, you might be wondering what this means for your account, your repayments, and your credit file. This article explains the key facts, what you should do next, and how First Credit Advice can help if you are worried about debt.

What is happening to Halifax?

Halifax has been a well-known high street bank and building society since 1853. Over time it became part of the Lloyds Banking Group, alongside Lloyds Bank and Bank of Scotland. The decision to scrap the Halifax brand means that over the next few years, Halifax branches and products will be rebranded under Lloyds Bank or Bank of Scotland.

For customers, this means:

• Your account numbers, sort codes, and online banking details will stay the same.
• Your mortgage, loan, or credit card terms will not change.
• You will still be able to use Halifax branches until they are rebranded.
• Your credit file will not be affected by the brand change.

Will this affect my debt or credit rating?

No. A brand change does not impact your credit score or your repayment history. If you have a Halifax mortgage or loan, the debt remains with Lloyds Banking Group. Your credit reports will continue to show the same account details. However, if you are already struggling with debt, any change can feel unsettling. That is why it is important to get expert advice early.

If you are worried about mortgage arrears, credit card debt, or other repayments, First Credit Advice offers free, impartial debt advice to help you understand your options.

What should Halifax customers do now?

Most Halifax customers do not need to take any action. But if you are in financial difficulty, this is a good time to review your situation. Here are three practical steps:

• Check your statements – Look for any changes to interest rates or fees. Lloyds has said rates will not change, but always check.
• Review your budget – If you have a mortgage, your monthly payment may change when your fixed-rate deal ends. Plan ahead.
• Get advice if you are struggling – If you are missing payments or falling behind, talk to a professional. First Credit Advice can help with mortgage arrears and other housing debt.

How does this affect people with debt problems?

If you have debts with Halifax – such as a mortgage, personal loan, or credit card – the brand change does not change your legal obligations. You still owe the same amount to the same lender (Lloyds Banking Group). However, the news has caused some customers to worry about branch closures or reduced customer service. If you are already in debt, this can add stress.

Remember: you have rights. Lenders must treat you fairly under the Financial Conduct Authority (FCA) rules. If you are struggling, you can ask for a payment holiday, reduced payments, or an affordable repayment plan. First Credit Advice specialises in helping people negotiate with creditors. Our creditor negotiation service can help you agree a manageable plan.

What about CCJs and defaults?

If you already have a County Court Judgment (CCJ) or a default on your credit file from a Halifax account, the brand change will not remove it. Your credit file will still show the debt. However, if you are struggling with a CCJ, there are ways to deal with it. You might be able to pay the judgment in full, set up a payment plan, or even have it set aside if it was issued incorrectly.

First Credit Advice offers specialist CCJ help to guide you through the process. We can also help with defaults and CIFAS markers.

What if I am self-employed or run a business?

If you have a business account or a business mortgage with Halifax, the same rules apply. Your account details will not change, and your borrowing terms will stay the same. But if you are struggling with business debt, it is wise to seek advice early. First Credit Advice can help with business debt solutions, including time to pay arrangements with HMRC.

What about HMRC debt?

Halifax does not lend directly to HMRC, but many people use Halifax accounts to manage their tax payments. If you have a Halifax current account or savings account and you owe money to HMRC, the brand change does not affect your tax debt. However, if you are struggling to pay your tax bill, you should contact HMRC directly or seek professional advice. First Credit Advice can help with HMRC debt and other tax-related issues.

Will I lose my local branch?

Lloyds has said it is committed to the town of Halifax, but it has not confirmed how many branches will close. In recent years, many bank branches have closed as customers move online. If you rely on face-to-face banking, check your local branch status. If your branch closes, you may need to use a Post Office or a mobile banking service. For those in debt, losing a local branch can make it harder to get help. But remember: you can always call First Credit Advice for free, confidential support.

What to do if you are worried about debt

If the Halifax news has made you think about your own finances, do not panic. The most important thing is to take action. Ignoring debt will only make it worse. Whether you have mortgage arrears, credit card debt, a CCJ, or HMRC debt, there are solutions.

At First Credit Advice, we are a UK FCA-regulated debt advice company. We help people just like you every day. Our services include:

• Free initial advice and budgeting help
• Negotiation with creditors to reduce payments
• Help with CCJs, defaults, and CIFAS markers
• Mortgage arrears solutions
• Business debt advice
• HMRC debt management

We do not judge. We just help.

Get in touch today

If you are worried about debt, do not wait. The sooner you get advice, the more options you have. Contact First Credit Advice today for a free, no-obligation chat. We will listen to your situation and explain the best way forward. You can also use our fee calculator to see how much our services cost – no hidden fees, no surprises.

Take the first step towards a debt-free future. Call us now or fill in our online form.