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HELP! Mortgage declined after 2 months...nearing exchange of contracts now!!
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# 1
wurz99
Old 06-05-2011, 11:09 PM
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Join Date: May 2011
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Default HELP! Mortgage declined after 2 months...nearing exchange of contracts now!!

I hope someone maybe be able to advise me.

I decided I wanted to move at the beginning of this year and got a 'mortgage in principle' with my current lender (Halifax). I put my current flat on market and got a buyer, so the ball started rolling then in mid-March. A few weeks later the Halifax decided to decline my offer based on the fact i am now self-employed and have been for only 1 year (this was all discussed at the time of obtaining my 'in principle' and the Halifax asked me to provide them with projected incomes etc. from my accountant which I did....which was all fine and led them to giving me an 'in pinciple').

so then the Halifax suggested I get the application done in joint name with my dad and put the mortgage against his pension (he's got a very good pension) and my income would be classed as 0. The mortgage would be an interest-only over 2 years which would give me the time I needed to accrue the 3yrs audited accounts they wanted. I got another 'in principle' from this. They instructed a survey on the property I am buying (which was all 100% ok) and i paid over 500 for this.


Another 4 weeks down the line (8 weeks now in total of being messed around by the halifax)....and they have just declined the 2nd attempt on the basis that I have too many 'clients' come to my home (I'm a nutritionist). I have excellent insurance in place to cover clients welfare etc. I hit the roof and said to halifax i didnt understand this reason as the mortgage was all against dad and his pension income so what did it matter what i did. I was told they had cross-referenced the 2nd application with the first and decided my business was 'commercial' in a residential property and therefore declined.

I am so confused, angry and worried that I will not only lose the house I am 8 weeks into buying but also the mounting costs from my solicitor etc. The halifax have said they will refund me the survey cost.

If I go to the HSBC where my parents and I have banked for at least 10-15yrs, will they know I have been declined for a halifax mortgage and therefore automatically decline me too. (ie will the halifax debacle blacken my credit rating with is currently 999). And do I have to even tell the HSBC about halifax declining me?

Have i got any chance of getting a mortgage elsewhere quickly.

please help advise me someone!!
Thanks.
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# 2
firesidemaid
Old 06-05-2011, 11:12 PM
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Posts: 2,003
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you need to find a good mortgage broker who is experienced in your non-straightforward income situation
From April 2007: Mortgage paid off so far 61115

Mortgage to go! 44560 Every Penny's a Prisoner!
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# 3
Conrad
Old 07-05-2011, 10:40 AM
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Join Date: Jul 2005
Posts: 23,635
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HSBC will almost certainly decline - this is much too complex for them. A lender taking Dads incomer into account will almost certainly fail as they will not believe he will live there which means it becomes in lending terms non standard, plus his age etc would have a baring.

The sorts of lenders that can consider this (as long as applied for correctly) are Tipton, Kensington and potentialy Cambridge BS.

Use your common sense - lenders do not like it where a person is likely to be havinbg clients to thier home - they of couse know people like Accountants do have clients visiting but they DONT WANT TO BE TOLD THIS as there are many legal and insurance implications! As soon as you tell a lender somethjing it forms part of the contract between you.
I run my own specialist finance consultancy for those with complex issues. I am not FCA regulated (by choice). I mention this as some users like to run things by me. I do not offer advice, only information.
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