Mortgage app approved but credit card debt increased

whitescarf

Hi

A couple of months ago I went to apply for a mortgage with a broker ( I have out an offer on a house any my house is sold stc. My mortgage apps were initially declined due to an old association with someone who is bankrupt. This has now been removed but too late for the app. My mortgage broker then got me accepted by Halifax but the LTV had to be 85 % and not 90%. My house sale plus savings will cove the 15 % dep but I needed to take out a further 8700k on my credit card to cover all fees ( estate agent, conveyancing and stamp duty). My mortgage adviser has not declared this new debt on my mortgage app, only my car loan and the mortgage was approved. He said he didn't need to declare it because I did not have the debt at the time of the application. I was very concerned about it being withdrawn etc at the last minute because of this and I have been very honest with my mortgage adv, but as I have never dealt with a broker b4, I don't feel that confident as I have not spoken to the bank directly. The mortgage adv says that If they do another credit check it will just be added to my affordability calculation and he said he spoke to Halifax about this. He confirmed that it is still affordable to me by using the intermediary calculator provided by Halifax to work out that even with the car loan and the credit card my affordability will be over 12k more than what I am actually applying for. However, 8700 seems a lot of money on a credit card, do I trust what is been said to me and carry on or do I try and seek further confirmation from the bank (although I don't seem to have a point of contact with the bank as this is being done via a broker). I don't want to be one of those unhappy bunnies loosing everything and being homeless due to a mortgage being withdrawn. Any advise?

lawriejones1

It all seems incredibly precarious and risky. Often solicitors won't accept credit cards as a payment method (or they might do up to a certain amount - but certainly less than almost £9k.

From a purely rational point of view can you actually service and repay these debts?

Thrugelmir

Is the move affordable? That's the question I would be asking myself.

I would expect the mortgage broker to very clearly spell out the dangers of what you are now proposing. As it's their reputation at stake as well. If they don't then sounds like a fly by night individual.

opinions4u

whitescarf wrote: »

My mortgage broker then got me accepted by Halifax but the LTV had to be 85 % and not 90%. My house sale plus savings will cove the 15 % dep but I needed to take out a further 8700k on my credit card to cover all fees ( estate agent, conveyancing and stamp duty). My mortgage adviser has not declared this new debt on my mortgage app, only my car loan and the mortgage was approved. He said he didn't need to declare it because I did not have the debt at the time of the application. I was very concerned about it being withdrawn etc at the last minute because of this and I have been very honest with my mortgage adv, but as I have never dealt with a broker b4, I don't feel that confident as I have not spoken to the bank directly. The mortgage adv says that If they do another credit check it will just be added to my affordability calculation and he said he spoke to Halifax about this. He confirmed that it is still affordable to me by using the intermediary calculator provided by Halifax to work out that even with the car loan and the credit card my affordability will be over 12k more than what I am actually applying for. However, 8700 seems a lot of money on a credit card, do I trust what is been said to me and carry on or do I try and seek further confirmation from the bank (although I don't seem to have a point of contact with the bank as this is being done via a broker). I don't want to be one of those unhappy bunnies loosing everything and being homeless due to a mortgage being withdrawn. Any advise?

I'd say it's a hell of a risk that you've taken. It's also akin to borrowing for deposit and if anything between now and completion flags this up to manual underwriting I think the application will be declined.

whitescarf

Yes the mortgage is affordable, I was actually advised to do this by my mortgage advisor. They spoke to Halifax and Aparantly they said is ok as long as the mortgage is still affordable. When the broker did the affordability check again on my to check (using the Halifax intermediary checker), with the credit card check and the loan, it said the max mortgage I can get is 12k more than what I have actually applied for. My main concern is that although the broker has informally checked with Halifax on The phone, it hasn't been officially declared on the application. the credit card money is via a money transfer at 0% so the sols won't need to take credit card. The only reason why I am doing this is because I was declined a 90% mortgage not due to affordability, but due to an error on my credit report which has subsequently been rectified. I saved for all monies inc extra for deposit and fees and taking into account equitiy on current house as if I was applying for a 90% mortgage. Do you thing my mortgage advisor should have notified Halifax, I think I should ask him to do this officially to make sure they are aware and take it I to accou t

whitescarf

And yes I can def afford the debts, the mortgage repayment of this new mortgage is less than the one I have now, and bear in Ming I have managed to save 6k in 12 months with my current car loan and mortgage with normal living expenses, so I would be infect replacing my saving with a credit card repayment to pay it off quickly

whitescarf

What I a going to do is make an appointment to see the Halifax directly. I would like them to ensure everything is taken into account prior to exchange. My broker is tied to the estate agent as well on my house sell so I believe they don't care what happens as long as I sell my house and the mortgage advisor had his fees paid to him directly upon application!!!

opinions4u

whitescarf wrote: »

What I a going to do is make an appointment to see the Halifax directly. I would like them to ensure everything is taken into account prior to exchange. My broker is tied to the estate agent as well on my house sell so I believe they don't care what happens as long as I sell my house and the mortgage advisor had his fees paid to him directly upon application!!!

A Halifax branch can't help you with an introduced mortgage.

whitescarf

opinions4u wrote: »

A Halifax branch can't help you with an introduced mortgage.

Thanks for that, what should I do then? Should I insist that my broker should speak to the Halifax themselves and make them fully aware of it? I think they should be aware if there is a change of circumstances, which in this case there is. I do not want to take any risks and would pul out if I feel it's too much of a risk otherwise, would rather lose my valuation fee and broker fee, than everything!!!

Building_Surveyor

An estate agent broker? No wonder they said it shouldn't be a problem.

whitescarf

The broker is a separate company but has a contract with the estate agent. They are regulated by the Fsa and a representative for legal and general. Are they liable if they are wrong?