Have paid off some debt but Halifax will now lend me less

opinions4u

Extra credit search?

Credit file still showing the commitments as they were?

DVardysShadow

AngelaUK wrote: »

As long as the amount doesn't drop below £153,000 now I am okay, but would to know what triggered the change. By the time I do a full application I will have paid a bit more off so fingers crossed!

In your position, I too would want to know, because it looks like a bit of a wild card which could come back and bite out a bit more.

Monet saving sense is to eliminate your interest bearing debt - on which you have taken a sophisticated view. But I wonder if the loan, with its high repayments is actually the problem for your mortgage application? Personally, I would probably be eliminating that and using the cards to stooze.

Thrugelmir

DVardysShadow wrote: »

But I wonder if the loan, with its high repayments is actually the problem for your mortgage application? Personally, I would probably be eliminating that and using the cards to stooze.

I would repay the loan, then redirect the monthly payments to reduce the stoozing cards.

A high proportion of the loan repayments is interest every month not capital.

AngelaUK

opinions4u wrote: »

Extra credit search?

Credit file still showing the commitments as they were?

They didn't say they were doing another search, just updating my open application with the new figures, I did ask if my rating had changed and they said no.

Only payments not showing on file yet may have been for June, figures showing when I checked before ringing were lower then my original application, plus my report was showing the lump sum paid off Post Office as did this in May.

The only hint they gave me is the way the cards were now spread out made a difference, will just do as suggested and work on getting more paid off.

AngelaUK

DVardysShadow wrote: »

In your position, I too would want to know, because it looks like a bit of a wild card which could come back and bite out a bit more.

Monet saving sense is to eliminate your interest bearing debt - on which you have taken a sophisticated view. But I wonder if the loan, with its high repayments is actually the problem for your mortgage application? Personally, I would probably be eliminating that and using the cards to stooze.

Strangely enough I have checked and the loan payment makes no difference at all to the amount I can borrow, infact with keeping the loan and paying off the Virgin card only I could borrow over £180k! (In theory).

I have had mortgages in the past with Halifax at higher amounts, no payments missed, unfortunately I needed to sell my last place a few years back at a loss so though the mortgage was repaid I lost all my equity. My fault for buying a property that appealed to a very limited market when prices were high.

Thrugelmir

AngelaUK wrote: »

Strangely enough I have checked and the loan payment makes no difference at all to the amount I can borrow, infact with keeping the loan and paying off the Virgin card only I could borrow over £180k! (In theory).

Not very MSE. Better to take a long term approach.

DVardysShadow

AngelaUK wrote: »

The only hint they gave me is the way the cards were now spread out made a difference, will just do as suggested and work on getting more paid off.

I dare say the back office have changed the criteria, front office don't even know how the rule is manually applied - just enough to think that it is to do with the cards. More and more, the rules being applied are secret - I have recently asked my motor insurer for premium before NCD. Staff cannot see this figure and would be disciplined if they tried to work it out.

I think I would be ringfencing the stooze - putting the stoozed money into a separate savings account, being sure that it covered all the stoozing cards in full. And then declaring none of it.

Although someone will shout 'fraud!'and may be able to prove their case. It is just another modern day living situation where there is something I could do with a clear conscience which breaks the law, while all the bankers around us do things which I could never do with a clear conscience, but all the time they never seem to break any actual laws.

AngelaUK

Thrugelmir wrote: »

Not very MSE. Better to take a long term approach.

For now I want to concentrate on getting a mortgage, the loan is 7.4% so am happy to keep that going for now. Once I move the mortgage and service charge is cheaper than I have paid on rent by a few hundred a month so can start clearing highest APR debts even quicker. The place I am after has been recently refurbed including rewired so should be minimal other costs.