Halifax Mortgage Application Help

redapple74

Hi my partner and I have applied for mortgage with Halifax my end of the application is fine but he is self employed .He was in business with his father for over 30 years now he owns it solely for the past 3 years as his father died.Halifax have asked for 4 years of accounts instead of 3 for some reasons .The ltv is just under 75% and have 20% deposit as he owns a third of house which is unemcumbered.Is this normal for Halifax to ask for .Also his credit history is not that great he has no debts or anything but he has not much credit history at all is this why they are asking as we are now really confused.We are both FTB so we have no clue as to whats up .

kingstreet

I wouldn't say it's normal, but I've never had a case where one of the owners of a business died leaving it to the other, so the requirement may be perfectly normal in the circumstances.

Could you please tell us the purchase price of the property and the amount requested, so we can accurately calculate the loan to value?

redapple74

Thanks for quick reply .The amont we need to borrow is 63k the house is valued at 85k and we also have 20% deposit which is his stake in house.

kingstreet

Right. It's a 74% advance.

At that level, underwriting is a little more relaxed and his lack of a credit record isn't as important as it would be at 90%.

Provide the requested documentation and the case should be offered as soon as the valuation is back.

redapple74

Thanks for the reply it has just dragged on and on and we have gave them everything they need this just popped up today.I knew they needed 3 years but was worried when they asked for 4 instead.:)

Goldiegirl

I worked at the Halifax until 2009 - at that time 3 years accounts was the norm.

I imagine he'll have the accounts from the last year it was a joint business, so just give them those accounts and the last three as sole owner, with the explanation you've given us.

amnblog

The Halifax underwriter is most likely looking for any changes to the financial position of the business between the trading period when your partners father was still alive and the following period.

Just being extra careful which is their job.

redapple74

Well since his father passed away the income of the business has risen gradually mostly in the last year so I could see them ask about this as thanks for to everyone for the replies:T