90% LTV mortgage underwritten over the phone

Carr84

Hi All,

First post for me. Wondering if anyone can give any advice or reassurance. I applied for a 95% LTV mortgage with £7600 on credit cards and a personal loan for my car with Monmouthshire Building Society. Despite going through the application and figures with the branch manager, they rejected it in full applicatin as my card balances were too high and my mortgage was doubling (capital) although the payment was only going up by £150pm.

I have applied to Halifax over the weekend and had the application underwritten over the phone. I have been at the same address for 10 years, no defaults, credit score in the 980's on Experian, have paid my valuation fee and they should be coming out this week. I am worrying acit as I already had an application turned down with Mon BS for no other reason than it didn't fit their lending profile -(why they issued an AIP the week before based on exactly the same figures I don't know- I was advised by the applications department that they were being picky because it was in the indemnity bracket).

Can anyone advise if there should be any reason why Halifax would now reject the application- have read a few threads about underwriters being picky, the only unusual things are a series of payday loans for around £250 per month for 6 months, all paid back on time as my husband was in some difficulty paying petrol bills when he was seconded 44 miles further away than usual wityh no reimbursement two years ago. All Halifax have asked for is one payslip which I have faxed to them this morning.

It is a sole application as my husband is on a fixed term rolling contract based on me lending 99K on a 34K basic salary.

kingstreet

Have you done a full application to Halifax, or a mortgage promise?

Scratch that. You've paid the valuation fee.

Halifax doing 95% now? I didn't know that, or have you come up with extra deposit having been turned down for 95%?

ccbrowning

I'd be worried about the Payday loan history - how long ago were those? Apparently some lenders won't even consider you for a mortgage if you've had a payday loan. Then again, you'd think they would be aware of this and think about it before even doing an AIP.

Carr84

@kingstreet The 95% was Monmouthshire Building Society who only lend in South Wales. They said they would lend if I agreed to pay off some of my credit card balance, so I scratched around for the remainder and went to Halifax for 90% LTV instead. If the others were being so funny at the first stages I didn't want to risk going any further.

@ccbrowning That was what I was worried about- however, Halifax rang this afternoon to say that the only thing they need now is the valuation completed on Thursday and a confrimation of Identity letter in the post and then they will issue the offer- so taking them at their word all looks good to go, they don't want to see confirmation of deposit or bank statements as they said all the checks had been completed on-line. So holdin my breath until the end of the week ...

Thanks both