Halifax Mortgage - Transfer of Equity

supasaver78

Hi my Halifax mortgage is in joint names with ex, he has agreed to be removed and let me have the house. Halifax have also agreed to let me have the house in my sole name (lump has to be paid to bring LTV down to 95%).

Bank advised that my credit score is near perfect and salary/affordability is fine and wage slips not required.

But will they write/call my employer to confirm income or job security?

or do they take my word for it as i'm an existing borrower?

Crinz

they will take your word for it, if they have told you that you can have it in your own name then thats all the underwriting done.

We have to get you to sign a letter of consent if we need to get an income reference

Thrugelmir

supasaver78 wrote: »

But will they write/call my employer to confirm income or job security?

Omitted to tell your lender an important fact?

opinions4u

Crinz wrote: »

they will take your word for it, if they have told you that you can have it in your own name then thats all the underwriting done.

Unless the "adviser" has said it will be fine but the underwriters haven't had sight of it yet.

It's a few years since I was involved in one of these, but for a joint to single name, high loan to value case like this I would have thought there would certainly be a request for proof of income and a verification check. Espeically in the current housing market.

I thought the various forms had an authority to seek references.

(They may well have changed since my involvement, but it does seem odd that the signed declaration wouldn't allow the lender to approach an employer for references).

getmore4less

Thrugelmir wrote: »

Omitted to tell your lender an important fact?

Well this was the situation 2months ago

http://forums.moneysavingexpert.com/showpost.php?p=36791582&postcount=1

The outstanding mortgage is about £104k and i earn £20k, remortgaging in sole name is not an option as i won't be able to lend that much.

I'm not sure what the value is, when i looked at remortgaging last yr (when things were ok) lender said we were in negative equity from the electronic evaluation, it was about £102k

MIght be that the cash injection to cuurent 95% LTV(on reduced prices say 10% off £102k) makes the new loan around £87k so less than 4.5* salary or perhaps there has been a pay rise to get the multiple down.

Crinz

opinions4u wrote: »

Unless the "adviser" has said it will be fine but the underwriters haven't had sight of it yet.

It's a few years since I was involved in one of these, but for a joint to single name, high loan to value case like this I would have thought there would certainly be a request for proof of income and a verification check. Espeically in the current housing market.

I thought the various forms had an authority to seek references.

(They may well have changed since my involvement, but it does seem odd that the signed declaration wouldn't allow the lender to approach an employer for references).

Since it is through Halifax, the document required for an income reference is a seperate document and has to be signed independently to the declaration.

When i said 'underwriting' I meant the background system underwriting that goes on.

As someone that has to get involved with these transfer of equity cases I can assure you that about 95% of them go through without proof of income being requested, regardless of LTV and if it a sole-joint or joint-sole.

At a guess, I would say that I have had to get income proof on about 2 or 3 in the last year and they were only because it was a credit score appeal.

Same applies for addditional borrowing to be honest, very very rarely request proof of income.

supasaver78

Hi sorry i hadn't realised anyone had replied to my thread.

Situation hasn't changed but bank are willing to lend 5x my salary which i didn't think was an option at the time. She said this was due to my salary, credit score & no outstanding debts anywhere.

Work sitiuation is that the big R word had been banded about but nothing has been confirmed yet and i'm fearing the worst could scupper my plans. I'm not concerned about taking hse on alone in current climate as i also have substantial savings if worst comes to the worst.

Declaration does mention authority to write for relevent references. If their own mortgage advisor in branch has provisionally agreed its ok then does it still go off to underwriters? not really sure what happens.

Crinz

i have done triple figures of these cases and never had any go to central underwriting. i wouldnt worry about anything

supasaver78

Thanks Crinz, i guess i'm just panicking since my life has been turned upside down. Fingers crossed it will all be sorted in a matter of weeks.

Also do you know what average sols fees would be for trans of equity?

Crinz

£300-£400 usually