Mortgage Advice Needed for FTB

angels01

Hello,

I am looking for a little advice. My husband and I are looking to purchase a house. Application was done through a financial advisor (one found on this site!!!) and Halifax was chosen. We had the mortgage offer through on Saturday but there seems to be a complication.

The mortgage is in husbands name only due to the fact that I declared myself bankrupt 3 years ago. So the problem is there was a condition that the mortgage would be accepted. That condition was that my husband paid off a loan he has (due to end in March 2010) and also his credit card. The loan he will be able to pay off as he has the funds there (just) but we are unable to pay the credit card off aswell as there wont be enough money left to pay the deposit required for the mortgage.

If i am correct too, from what we read - its the Solicitor that states to Halifax that we have paid both loan and card off? The Financial advisor has told husband this morning to balance transfer his credit card so that he gets the written confirmation from company that the card is paid. My confusion here is, won't the mortgage company complete another credit search on him and find the new card opened? hense making this a pointless exercise?

Just to add.... With our combined wages, we can more than afford the mortgage payments even with the loan and card payments we currently make! Motrgage we are asking for is £72k with 10% Deposit.

Is there anyone that can pass some advice my way before we know for sure that we have to pull out of the purchase?

Thanks in advance..

betmunch

Did you tell the advisor you were keeping the loan or credit card?

I think you will find the Mortgage advisor has stated that you will be paying off the loan and credit card so that the application passes the affordability check.

if this is the case then Halifax will require proof that the balances are paid off before releasing the money, hence the solicitors to confirm.

I think you would be running a very fine line if you were to pay off one card with another as you will then have a debt on completion that the lender does not know about and you should have told them about it.

TrickyDicky

With a loan, and a credit card, and only £7200 in savings, how are you going to pay solicitors fees and moving costs? I know they're not huge but have to be considered. Personally Id probably pay off the debts now, and save for a few more months and buy later.

_Andy_

Pretty apparent your 'advisor' hasn't got any idea of ethics or good practice.

herbiesjp

Why pull out of the purchase?

Step 1 - find a different adviser that knows what they are doing and that will not land you with wasted mortgage applications, due to not knowing their lending criteria.

Step 2 - find a lender that will ignore the loan, as it will expire shortly, and use the lump sum to clear the credit card debt (that is, if the new lender requires anything being paid off)

angels01

Thanks for your replies.. here are some answers;

Betmunch
Yes the advisor knew we were keeping the card and loan as originally my husband offered to pay of the loan the day we were discussing it but we were told that it would not affect the application as its due to end.

TrickyDicky
Solicitors fees are taken care of and moving costs will be nothing we are literally moving a couple of streets away from where we are and have a mate's Lorry to use to get everything there.

We have a contingency fund but this wont cover the card amount!

Herbie
Thanks for your advice there, I will speak to husband about this and see where that takes us. The reason for us potentially pulling out would be that we only got our offer on the house accepted (10k below asking price) as we are (or thought we were) in a position to move very quickly! Now with all this that needs to be sorted etc the vendor will probably look at other offers or something.

Thanks agian all for you advice, its been much appreciated!

herbiesjp

angels01 wrote: »

Herbie
Thanks for your advice there, I will speak to husband about this and see where that takes us. The reason for us potentially pulling out would be that we only got our offer on the house accepted (10k below asking price) as we are (or thought we were) in a position to move very quickly! Now with all this that needs to be sorted etc the vendor will probably look at other offers or something.

Thanks agian all for you advice, its been much appreciated!

There are lenders that can turn this around quickly for you if need be

I got a case submitted 2 weeks ago with one lender, and the survey was done, and the offer issued all within 5 working days

So that kind of turnaround would need necessarily mean you have to pull out of the purchase.

Good luck

angels01

Thanks Herbie again.

Husband is gonna speak with advisor tomorrow and ask him to search other lenders, as we are not happy to take out a Balance transfer card and not disclose it - sure that is breaking somekind of fraud act law?!

Your advice again has been very helpful.

angels01

Will see what financial advisor comes up with today once we instruct him to query with Halifax or search other lenders.

Thanks all

herbiesjp

Good luck - keep us posted

You would need to submit a new application asap though

opinions4u

I'm going back a bit, but if a loan/credit card had less than a year to run Halifax usually disregarded.

Press you adviser or Halifax on this basis first before dishing out a new set of fees for a new mortgage.