Halifax Mortgage

prone2accidents

Can anyone advise?

Me and my partner went to buy a house in May but due to my bad credit and linked addresses I couldn't go on the mortgage.
My partner put it in her name and got a mortgage for £60000, We had to put 10% down for he house which was £65000.

The mortgage offer in may was £83000.

It was a repossession so we got it cheap, now we have come to free up some equity as the house value is a minimum of £80000.

We had an appointment at the Halifax and everything seemed fine, we had to go back a week later due to there system being funny and we had found out my partner is pregnant so we told the mortgage adviser.
Now she says there is a good chance they will not lend anymore on the mortgage. My partner got a 2 year fixed rate mortgage.

My partners credit is exceptional and earns £22k a year, what options do we have?

Thrugelmir

How much equity are wanting to release and for what purpose?

prone2accidents

£13000, just enough to pay off 2 credit cards that we used to fix the house up.

Thrugelmir

prone2accidents wrote: »

£13000, just enough to pay off 2 credit cards that we used to fix the house up.

I suspect the Halifax would decline her application on this alone.

Suggest you visit the Debt Free Wannabe board for advice and support. As you need to tackle the issue head on yourselves.

kingstreet

They are/were prepared to lend £73k on a value of £80k?

That's 91.25% of the value and I'm surprised they would even consider that.

prone2accidents

Thanks, Does it not matter that she has equity?

Has the lending become that bad???

kingstreet

prone2accidents wrote: »

Thanks, Does it not matter that she has equity?

Has the lending become that bad???

Your maximum mortgage was 90% of the loan to value when the property was purchased and lenders tend to stick to that for additional borrowing too.

At £80k, I'd expect the maximum they would lend to be 90%, or £72k.

In addition, Halifax criteria says no additional borrowing is allowed until you've had the first mortgage for six months or more.

I'm not sure you've ever been likely to get this loan as a further advance or additional mortgage borrowing.

http://www.halifax-intermediaries.co.uk/criteria/existing_customers/default.aspx?filter=L

Click the arrow pointing downwards in the blue bar marked "Lending Limits" for further info.

prone2accidents

So even at 80% lending limit and taking into account the value of £85000 and the existing mortgage of £60000, £8000 should be available?

Or is it that they know shes pregnant now?

We saw that the mortgage adviser had a need to know form and on it was the pregnancy.

kingstreet

The value is now £85k? Has the property been revalued by a surveyor?

If the value is £85k, 80% is £68k yes. Whether or not Halifax will lend that is down to income, affordability and the impact your credit commitments have. With only £8k, there's still £5k of credit card debt left which has a £150 per month (£1,800pa) downward drag on borrowing.

I've never known a mortgage application be rejected because someone is pregnant. There's no question on an application form requiring that answer.

Did the Halifax employee know the property was purchased less than six months ago?

kingstreet

One of the members of this forum is ex-HBoS and he may be able to see the specific issue you face here. I can see general issues, but I'm not sure which one is likely to be the problem you face outside the six months.

prone2accidents

The Halifax employee was told by my partner about the pregnancy, It was written on a an a4 sheet when we went back for another meeting.

The value of houses in the area are averaging £80-£85k.

If she pays off one credit card then she will be happy, £6 will cover that.

I work full time but my income does not get taken into account due to me not being on the mortgage.