Recourse on declined mortgage?..just looking for a reason why?

GMS

How much renovation was needed? Was the property habitable?

toofy

The property is being let out at the moment, so no problems there..I'm just at a loss why they wouldn't proceed..it has put a real dampener on the whole process...

opinions4u

1. How many bedrooms?

2. When does he take his "A" levels?

3. Does it have both a bathroom and a kitchen?

Do you have equity in your own property that you could use to raise capital with which to buy the student place for cash?

toofy

At the moment there are 4 bedrooms, although we are intending to install a shower and toilet/washing facilities in the 4th bedroom for my son, therefore making it a 3 bedroom house. We probably have enough equity on our own house to enable us to raise the capital to buy outright, (I would have enough credit on my credit cards...lol); however we wanted to include my son on the mortgage as he is providing half the deposit, and it really will be a matter of signing it completely over to him after his course finishes, for him to do as he pleases - hopefully by that time he will be in full-time employment and qualified with his masters degree.

toofy

He is taking his A-Levels in June 2012...and we don't envisage a problem with him being accepted at the University.

opinions4u

I'd decline the mortgage.

He has no need for a 4 bedroom property. It's in student land. There's already tenant(s) in it.

He hasn't even taken his "A" levels yet, so how do you know which university is going to accept him?

It's a buy-to-let investment, nothing to do with a residential mortgage for your son. It falls outside Halifax residential lending policy so they've declined it.

I don't particularly rate your independent mortgage adviser for trying to pass this off as a residential mortgage to Halifax.

toofy

Thanks for you thoughts, but it is NOT a buy-to-let investment, as I'm not taking the tenants on, that is a stipulation of my offer, that they are removed before I sign any papers. My son will be moving to this area, that I have no doubt upon- his university offers are in place - all I wanted to do was pave the way in the months ahead in preparation for him living there - buy the property, make the necessary renovations and redecorate. Current accommodation for students are approximately £75 to £95 per week. Why should I pay this if I can afford to buy a property with him? It would be a small mortgage of roughly £200 per month, it just makes financial sense to do this, and I've hit a brick wall...

Trollfever

From Halifax:

We approve 8 out of 10 mortgage applications, but sometimes applications are declined. This doesn't mean that you won’t be successful if you apply again with us in the future. And if you are declined, we promise to help you to understand why, to offer you alternatives, and to enable you improve your chances next time.
The reasons for a declined decision will be based on three categories: affordability, credit profile, or lending policy.

http://www.halifax.co.uk/mortgages/help-and-advice/guides/mortgage-process/qualifying-for-a-mortgage/default.asp#declined

GMS

Taking A levels in 2012? That would make him under 18 so could be the reason for decline

toofy

All his university applications are in for the same town, all have been accepted and I have no doubt that he will achieve his grades and will have his choice of courses- this idea of a house was providing a real goal for him and he will be living there whether we get a mortgage approval or not...just seems wrong that when he has capital that is his own, he cannot invest with our help to provide his own accommodation, thus giving him a real chance to concentrate on his studies without worrying about settling in to student accommodation.