"Agreement" in principal

SouterStressed

I have sold my flat I have a large deposit for a new house.

I got an IFA who took all my details told me how much I could borrow and where.

I then found a house well within the IFAs suggested budget and got an agreement in principal from the Halifax.

After getting my offer on a house accepted the Halifax have changed their tune and asked for a further £5000 on top of my £50000 deposit. An amount that I cannott afford. I am putting all my equity into the new house already.

I tried to contact the Halifax directly but the guy on the phone refused to discuss it with me and told me to contact my broker.

I am not at all happy and cant help but feel that I am being conned somewhere down the line.

I have contacted the RBS who said they would lend me the money no problem, according to my IFA they were not even an option.

Please help as this is driving me up the wall.

ACG

Was your IFA an IFA or a FA...as in not independent?

RBS may not be on his panel or the deal you have may not be available to him.
If you have found what you want through another route go with that. Each lender has different criteria, halifax may not be happy with the risk so they want a larger deposit.

SouterStressed

Definatley an IFA.

I am concerned about my credit rating as I have had one offer already and have been told going for another can have an adverse effect.

I was happy with the origonal offer and do not understand why they changed it nor why they will not discuss it with me.

ACG

If you dont speak to your advisor then you wont find out.

You have said RBS will accept you, have you got an agreement in principle from them or have you just been on a calculator thing?

The original offer isnt available, there are any number of reasons for that - some can be rectified, others cant. The only way you will find out is by speaking with your advisor.

SouterStressed

Any advice I could get is appreciated.

I have no idea what to do, although I have not signed any missives I have had an offer accepted due to the bogus "agreement" from the Halifax and could end up in the brown stuff because of this.

Having sold my flat already I have 3 weeks now until I am effectively homeless.

Between us my wife and I earn £33000+ pa and we are looking to borrow £149000 with a £51000 deposit. The house is valued at £200000 and we are looking at a 25 year term.

Does that sound feasable to you?

ACG

It does sound feasible, but you wont get it with every lender.

Do you have any loans, credit cards, HP etc?

SouterStressed

ACG wrote: »

If you dont speak to your advisor then you wont find out.

You have said RBS will accept you, have you got an agreement in principle from them or have you just been on a calculator thing?

The original offer isnt available, there are any number of reasons for that - some can be rectified, others cant. The only way you will find out is by speaking with your advisor.

RBS agreed over the phone.

The reason given was my income being too low, a figure which my IFA has been aware of all along.

I am a company director so my last 3 yrs accouts have been considered. As a result the Halifax are only aware of my earnings up to 31-08-11 at which point
I increased my pay by 50% perhaps if I made them aware of this....

To be clear this increase takes total household income to £40000+

SouterStressed

ACG wrote: »

It does sound feasible, but you wont get it with every lender.

Do you have any loans, credit cards, HP etc?

1 car loan £250 per month 10 months left.

Dave_Ham

Assuming this was on a repayment basis, can you not extend your mortgage term to get to the lending you want?

Halifax will usually allow until the oldest of you reaches 69 years old...

This will release more but cannot imagine your broker would have not done this immediately??

SouterStressed

Dave_Ham wrote: »

Assuming this was on a repayment basis, can you not extend your mortgage term to get to the lending you want?

Halifax will usually allow until the oldest of you reaches 69 years old...

This will release more but cannot imagine your broker would have not done this immediately??

Forgot to mention they also changed the duration to 33 yrs which takes me to 65.

Dave_Ham

Schoolboy error - unless your employment otherwise dictates you can take to 69 years - not sure if Halifax cut off at 35 years or 40 years - give me 5 minutes and will check..

Also, put down you will consolidate the loan and worst ways you pay £2500 max (better than 5k) if they make it a condition of the offer...

quick check on criteria and 40 years