Mid Mortgage Application Stress!!!

trush09

:eek: So....sale agreed a property, had a mortgage promise of 99,700 but only need exactly £77400. I was told that my student loan repayments wouldnt matter as theyre taken in the deductions but NOW that Ive moved to application stage and paid all fees theyre tellling me that with my student loan repayments they can only lend 73000 (ish)!! Which means I need more deposit which I don't have!#

I find this really unfair and strange that with small loan repayments it has affected my afforadibility so much. Why didnt they take these at mortgage promise and I would have looked for a cheaper property..Surely this is their fault?? What do you all think? Thanks

R_P_W

Hi, this happened to us not long ago. Did the initially affordability checks based on incomes and outgoings etc and were told a figure we could borrow (subject to application). told that student loan payments wouldn't count. Turns out they came back with a lower figure than first told. We have been quite lucky in that we have been able to offset that shortfall by provided details of bonuses we have received in recent years. These are not guaranteed and different lenders seem to consider them differently.

You mention a 'mortgage promise'? Is that the correct term? I have nnot heard it called that. I have heard of Agreement in Principle but from what i read on here they aren't worth paper they are written on.

trush09

Thanks for reply, yes I meant AIP, basically it was all agreed in theory providing the information I gave was correct which it was but now these student loan repayments are bringing it down. I feel bad for the vendors as they have also sale agreed a house and we've been working together to get this put through quickly. I'm now waiting to hear back and see if they can do anything else for me. if I dont get this mortgage will I have a leg to stand on putting in an official complaint do you think?

betmunch

Mortgage Promise is a Halifax term, is your mortgage with Halifax?

If not who is it with?

trush09

Your right its with Halifax

AFK_Matrix

Yeah Mortgage companies are a pain. I had big issues trying to get my mortgage, Natwest being the worst. They took me through the whole application process, so searches on my credit file etc, and at the end of the application interview it said it had been refered to the assessors. So 3 days later they phone back and say sorry can't give you the mortgage as you don't earn enough!!! What the hell!!! Then tell me that at the application stage grrrr!!!

I'm afraid that your stuck and will have to look else where for a mortgage if they won't lend you enough. I eventually went with the Post Office (Bank of Ireland UK) and I can't fault them tbh. Great customer service and the assessor was kind enough to ignore my student loan, but only because it had like 2 months before it was paid off. I'd get searching for another mortgage mate.

ruggedtoast

Student loan payments should count as they are mandatory outgoings.

Nevertheless some advisers will tell you they don't count so they can sell you the mortgage, and just won't put them on your application if they think you aren't going to be fully audited.

betmunch

That is very harsh as Halifax dont ask for Student Loan payments on their Mortgage Promise.

Unfortunately the Mortgage Promise is not an offer and does not commit Halifax to giving you a mortgage, in fact Halifax Mortgage Promise is probably the weakest AIP available.

As its not obligating Halifax to give you the mortgage I dont believe you have grounds for complaint.

There is nothing in their criteria about the student loan being counted as a deduction, and to be honest I didnt believe they would count it as its paid before tax. Very very harsh on you IMO.

Sorry I couldnt give you better news

betmunch

Thinking more about this, they dont ask specifically about the student loan, but they do expect the advisor to put in TOTAL commitments. Which of course would include a student loan.

As RuggedToast says they are mandatory, the more I think about it the more I think you have been let down by your advisor. I feel they have keyed the AIP incorrectly. Did they have your payslip when they did it? This would have shown the student loan cost at the time the AIP was done.

Did you use a broker or go directly to the bank?

trush09

Thanks for all your advice, if they can't offer my the amount requested I am defo complaining, Ive been told to call to branch 3 times aswell. First time to show P60 and past 3 months payslips, then the last 12 months then the last 4 bonus slips, not happy with service at all and will be seeking fees back as I feel rightly or wrongly that I was mis-led.

trush09

Directly with bank via phone. I had x2 mortgage promises as one expired and on both I was told not to worry about student loans, also my friend also through halifax was told the same now shes v worried and is trying to get this clarified.