Help Halifax reduced offer from 90LTV to 85% LTV 3 month later!

2cat

Hi please can anyone help? myself and my partner found a house to buy in February, it is on the affordable housing scheme(discounted forsale scheme, council own 25% £35,000, we own 75% £105,000 ) we went through various forms to be accepted to buy this house took several months!
We decided it would be best to pay a mortgage advisor to find a mortgage as we are first time buyers (unfortunately I've had an IVA and it is still on my credit file until 2013 so I am unable to go on the mortgage at the moment). The MA said the ONLY mortgage lender that would lend under this scheme was Halifax so they offered 24 May a £94,500 mortgage in principal expires 30th September 6.7%, we have £10,500 deposit 10%. The Halifax requested that the council make changes to the deed so that if the house got repossessed then they can sell the house on the open market which the council agreed.
With no fault of our own this took some time and the vendors solicitors held this up for 3weeks.
So end of July Halifax had withdrawn their 90LTV and reduced it to 85LTV with NO reason, My partners credit history hadn't changed (Experian credit file checked)
We have paid valuation fee £350 and also incurred solicitors costs search's £? We haven't got an extra £5,000!!!! so called affordable housing!!!!
And the worst thing I have become homeless in the result of this! PLEASE CAN ANYONE HELP!

Thrugelmir

Haven't you been saving since you originally saw the property in February?

2cat

We have still had to pay rent living costs etc, the point is that if we had known that Halifax was going to reduce offer then we would have decided not to buy the house and pay needless expenses if we had known that they can do this! with no explanation? Any advice please

Thrugelmir

Did the Halifax withdraw your mortgage offer ?

If so, I assume that this has nothing to do with their changed lending criteria. As they would honour existing offers.

2cat

The halifax had recalculated the original offer at 3months to a CLASS B ? so there fore changing the original mortgage in principal offer, in the mortgage leaflet that came with the mortgage in principal it did state that they can change the offer at any time then it listed several reasons why?
We checked if any applied and non of them did?

casualwalks

Ah, so the 94, 000 was a mortgage in principle not a mortgage offer?

2cat

Yes £94,500 was a mortgage in principle which is valid from 24 May to 30th September

opinions4u

An AIP collects high level information to assess likelihood of getting a mortgage.

A full application reviews more in depth information as part of the credit scoring process.

While an AIP is a useful guide on the possibility of getting a mortgage, it has no legal standing.

casualwalks

Unfortunately, a mortgage in principle is by no means a guarantee of a mortgage offer, just an indication of what you *might* be offered. So they didn't withdraw an offer of 90%, they offered 85% upon submission of the full application. If you read through the forum you will find countless stories of people getting offers in principle who then went on to be refused a mortgage when the full application was submitted.

2cat

My partner hadn't got to the stage of submission of the full application, he noticed that on his credit file Halifax had gone into his credit file 27 July and Halifax had put the wrong time at his current address 3 months instead of 33years! would that make a difference?

opinions4u

2cat wrote: »

My partner hadn't got to the stage of submission of the full application, he noticed that on his credit file Halifax had gone into his credit file 27 July and Halifax had put the wrong time at his current address 3 months instead of 33years! would that make a difference?

That could make a significant difference.