Halifax mortgage advise...

kells1232002

Hello.

I would like some advise.

I am going to view a shared ownership property next Monday and I have first priority on reserving it.

I have an agreement in principle with Halifax and I just called them to find out what score I got with them, as I have read on here Halifax will score you A, B or C.

I got an A and was told that meant perfect credit.

I'm putting in my full application next week and just wondered if anyone knew what douments they would need to see. I ready somewhere that if it came out as A then they just require payslips and proof of Id.

I am just a little worried as I have a £2000 overdraft which is maxed out every month. I have told Halifax about it. I just wondered if they would want to see my bank statements to complete the application, as I am worried they will decline me if they see I live in my overdraft.

Any advice welcome.

Thanks

katelu

Hiya, I have just got a Halifax mortgage as a first time buyer (with 30% deposit). I was processed as a B and they asked for wage slips, landlord details and a copy of my rental agreement ( my mortgage works out less than I pay rent which helped!), and statements. As you can see in my signature I have way more debt than you but they were happy to consider me because I have never had any defaults/late payments and I can clearly afford to keep up my repayments and as I was open and honest about it they didn't bat an eyelid when they saw my statements, I'm pretty sure you'll be fine.

HTH's

Cozworth806

Why do you feel the need to start another thread about essentially the same thing, having started two already?
http://forums.moneysavingexpert.com/showthread.html?t=1932073&highlight=

http://forums.moneysavingexpert.com/showthread.html?t=1930939&highlight=

kells1232002

Cozworth806 wrote: »

Why do you feel the need to start another thread about essentially the same thing, having started two already?
http://forums.moneysavingexpert.com/showthread.html?t=1932073&highlight=

http://forums.moneysavingexpert.com/showthread.html?t=1930939&highlight=

Because my application has now progressed and I wanted to know if anyone else had been in a similar position.

sammyjammy

I think you're mad personally but putting that aside I would imagine that they would consider that someone maxing out an overdraft of £2k is pushing their luck, if you spend all your money "buying" this house what will you do if/when something goes wrong? Take out more credit?

I think you are relying too much on renting out your second bedroom to your friend, what if things don't work out? What if you can't find a replacement if they move out? Do Halifax know you are planning on renting a room out? They need to know if they are going to lend you money.

Best of luck to you, I think you're going to need it.

Sam

kells1232002

sammyjammy wrote: »

I think you're mad personally but putting that aside I would imagine that they would consider that someone maxing out an overdraft of £2k is pushing their luck, if you spend all your money "buying" this house what will you do if/when something goes wrong? Take out more credit?

I think you are relying too much on renting out your second bedroom to your friend, what if things don't work out? What if you can't find a replacement if they move out? Do Halifax know you are planning on renting a room out? They need to know if they are going to lend you money.

Best of luck to you, I think you're going to need it.

Sam

I have worked out my budget and I can afford the bills, etc on my own. The money from a friend would help me put money into savings for things like problems happening with the property, etc plus pay off the overdraft.

I just wondered if anyone knew whether they would ask for a bank statement if I came out with an A credit score on my agreement in principle. As I have read on a webiste that they only require your payslips then??

I just wondered if anyone else had recieved an A and what documents they had to send?

opinions4u

kells1232002 wrote: »

I have worked out my budget and I can afford the bills, etc on my own. The money from a friend would help me put money into savings for things like problems happening with the property, etc plus pay off the overdraft.

I would strongly advise getting out of overdraft at the earliest opportunity. Remember, banks can recall overdrafts on demand. If you're reliant on this form of debt and that happens how would you cope?

I just wondered if anyone knew whether they would ask for a bank statement if I came out with an A credit score on my agreement in principle. As I have read on a webiste that they only require your payslips then??

They will ask for less documentation for an "A" pass. They rarely asked for bank statements when I was managing mortgage advisers, although things may have changed now. But if you've already disclosed your overdraft and the statement merely confirms what you've told them I don't foresee a problem if they do ask for it. Do you?

kells1232002

I have told the mortgage advisor everything in the branch and I had to tell him how much I pay for the overdraft which he included when processing the agreement in principle.

I plan on setting up on standing order every month to pay off a certain amount of the overdraft every month. The only reason I have it is beacuse I went travelling at the end of last year and cleared a lot of other debt since I have been bacl and been saving for a deposit so havent paid off my overdraft yet. I have now seen this property which I really like the look of so applied (before I have had chance to pay off my overdraft).

Thanks for your advice.