Halifax mortgage offer retracted!? Help!

tigthepig

Hi Nancyo,

Thanks for the response. We haven't had any luck with getting a reason from Halifax. They are point blank refusing to justify their decision. Did they actually tell you directly that the problem was with your partners contract? We've lodged a complaint and are currently going down the freedom of info route to find out what info they hold on us, in case this may help clarify things.

Having spoken to a new broker/financial advisor (our original one hasn't provide a lot of info) and our conveyancer (who has dealt with all the sales on the development so far) both have indicated that they feel the problem is likely to be due to a 'density' problem with the site- as Halifax are currently lending on 3 of the 4 sold properties. Apparently Halifax only usually prefer to lend on a max of 50% of properties in a development.

Furthermore our county council apparently told the developer that Halifax were the only organisation that would lend on the site, presuambly due to all the restrictions set by the 106. So quite why this 'density' issue hasn't been picked up as a problem by our county council or is beyond me! It seems a tad inevitable that other lenders would be needed and that therefore the 106 would need to address this.

Our conveyancer and new broker have indicated that our credit ratings shouldn't have been the cause of our problem- as we were credit checked on a couple of occasions throughout the process. And the broker has said that, while our credit ratings aren't great, that we would be able to get a mortgage on an open market property. He also reckons the contract issue shouldn't be an issue!?

But as we know, its hard to let go once you've found the place you want. So im now attempting to examine the 106 and find out what can be done to encourage another lender. Not only for us, but if we cant get a mortgage due to the one lender having already lent too much- how is the developer meant to sell the remaining properties!? An issue for another thead....

kingstreet

Halifax lent on half the apartment block in the end

We should have discussed this in more detail earlier. It didn't occur to me that it may have been this situation that was causing you a problem. I ended up with having to get cash buyers or those able to buy without the shared equity loan when the Halifax wasn't prepared to take any more of the development.

tigthepig

Hi Kingstreet,

Thanks for that. We actually have some potential for a cash purchase, as a last resort, but putting my head infront my heart i cant say i want to take the risk. If this is the situation now, how will we sell the property in the future?

Due to the restrictions of the 106 the property can only be sold to a first time buyer, who qualifies for affordable housing, and has a connection to our district. If we had to add 'cash puchaser' to this I don't think we'd ever be able to get rid of the place if we wanted to move.

kingstreet

tigthepig wrote: »

Hi Kingstreet,

Thanks for that. We actually have some potential for a cash purchase, as a last resort, but putting my head infront my heart i cant say i want to take the risk. If this is the situation now, how will we sell the property in the future?

Due to the restrictions of the 106 the property can only be sold to a first time buyer, who qualifies for affordable housing, and has a connection to our district. If we had to add 'cash puchaser' to this I don't think we'd ever be able to get rid of the place if we wanted to move.

tig - I have to admit to a degree of ignorance on this S106 issue as it's not something I've come across here. When you mentioned it the other day, I spent about half an hour researching it and found the information a bit patchy.

In general, if there's a reason why the majority of lenders won't lend on something, that represents a stumbling block to selling in the future if that restriction will apply to the later sale of the property. Only you or someone with more experience of this can answer this question.

The good news is that you are "mortgageable" if it's only the property that's the problem.

I don't know how you approach keeping this property now if the Halifax is the only option and you've had that taken away.

tigthepig

Kingstreet,

Have you ever dealt with 'low cost buy' affordable hosing? I was wondering if this is less attractive to lenders as they would (depending on the ltv) 'own' more equity in the low cost buy property than one that was shared ownership?

(Ive put some more info in another thread (S106 affordable housing-who will lend) if this is of any help and you'd be kind enough to take a look). Thanks again

tigthepig

Just posted that last response before noticing yours

You've been really helpful, so can only say thanks!

My intention is to take the 106 along to nationwide and see what they say Can but try. That would hopefully give us an idea of why only Halifax would lend (as mentioned previously we cant get any info from Halifax about anything). I also intend to speak to the council to see if they can indicate why the 106 is only acceptible to the Halifax (they were pretty unhelpful when we did our affordable housing application so I dont hold a lot of hope), and Ill ask the developer too.

At the end of the day if the 106 is going to cause problems to the developer and those who own properties there there should be something that can be done to adjust the 106?! It certainly doesn't currently seem to be helping anyone, as intended

nancyo

Yes they let us no that was the reason, as we were going for a shared equity mortgage we could only try one other lender anyway and didnt bother as we didnt have the funds for extra surveys etc which the other lender needed.
Hope you get your reasons from them, that would be annoying not knowing.

tigthepig

Thanks Nancyo. Its good to know they at least speak to some people

Did you have a full offer, and they then backed out, or were you at an earlier stage, such as promise, mortgage in principle or pre/post valuation?

Just a thought, as maybe if we were further along the line than yourselves when the Halifax backed out (after we had a written offer), it maybe that the Halifax are less willing to speak to us because they'd made more of a full commitment before deciding to back out.

Also, when they told you did they do this in writing or did they call you?

Our broker has tried contacting Halifax and so have we. We called the switchboard and chose the 'finding out about the progress of your application' and spoke to someone there. That individual said that an underwriter had made the decision to revoke the offer, but they will not specify a reason. She rattled off a list of generic potential causes and thats as much info as we have.

We haven't received anything in writing. Our broker received an email and we've had the conversation as above but thats it.

nancyo

I had done/been accepted with mortgage in principle had paid for a valuation on the property and my thick as sh*t solicitor was so confident in us they concluded the missives - without our knowledge!! So that got us into a right mess
The bank only informed our broker, never gave us the decision in writing didnt even contact us personally, only the broker.