Halifax mortgage offer

Owlseyes

Hi All

Having a nightmare with mortgage lenders at the moment! I applied with HSBC two and a half weeks ago after getting an AIP and securing an offer on a property. Last Monday HSBC phoned to say that the underwriters had decided that they could only lend me £90000 that's £32000 less than the AIP I was extremely unimpressed. When I queried why this was I was told 'well if you stay in the house for 30 years and interest rates go up but your pay stayed the same the mortgage would be unaffordable for you' it might just be me but this sounds like a very odd way of assessing affordability!

Anyway on Monday I applied with a mortgage with Halifax through a broker, the survey fee was taken from me straight away. Yesterday I was told that the survey had been instructed, I asked if that meant that the mortgage had been approved subject to valuation and was told by Halifax that they don't offer mortgages subject to valuation but only make a decision when they have received all documentation and the valuation has been completed. They said that my payslips and bank statements have been accepted and it was just the valuation they were waiting for. I'm completely confused! Does this mean I've passed their affordability and credit checks?? Surely they wouldn't do a valuation if they didn't think I could afford the mortgage? If they do the valuation and then turn around and say I don't meet affordability I would have wasted £400 on a valuation fee for nothing! Anyone else had this experience?

Thanks in advance!

CharleyCheese

Common query I've read here and there seems to be no hard and fast answer.

Nationwide apparently also ask for the valuation fee up front on application and then book one in after the application has been received. It's not clear whether they just book it in as a matter of course (and therefore cream a guaranteed few hundred off everyone who applies) or whether the first credit check has been done and approved etc.

Very confusing I agree, I'd also like to know the answer!

amnblog

Many lenders instruct valuation before they have underwritten the rest of the mortgage.

Halifax credit score on application so that will be OK.

The golden rule is that lenders can ask for anything at any stage and revisit the case at any time before offer ( and occasionally after offer).

Owlseyes

That's good to know they credit score you on application. Since the drama with HSBC I'm dreading another surprise! I know I have a very good credit rating and I earn £26000 a year (5000) of which is shift allowance which Halifax say they'll take 60% of. So I have my fingers firmly crossed, I've applied for a mortgage of £118000 plus a £995 fee to be added to the mortgage. I'm remaining ever hopeful!