Halifax offer declined- advice please

menachael

Hi,
Really desperate for some advice. Basically, I'm a first time buyer, been living with my partner for past 5 years. We have sold that house and partner has another property that is up for sale. We want to buy a new build on help to buy scheme but as partner has not sold their second house, we have applied for mortgage solely in my name.
I earn 40 000 per year, have 21500 deposit, want to borrow 178000. Passed AIP with Halifax, passed help to buy equity loan criteria, passed credit checks.
Apparently my case got referred to underwriter because there was a late payment on file from 3 years ago. That account is settled- I faxed confirmation of settlement and thought that was it.
They then wanted confirmation of deposit- profit from my partners house sale. I had been paying 600 per month to partner for living costs- now house is sold I no longer pay it. (We are living with parents at moment) halifax wanted letter to confirm this which we provided.
A week after all if this they have declined mortgage offer - valuation has been paid for and completed!- on grounds of affordability. They do not accept I'm no longer paying 600 to partner- we are a same sex couple and I honestly don't think they view us as life partners! Also they said I am in overdraft- I was 300 pounds into overdraft which has limit of 2500. I actually have 5000 in a savings account- it's there for contingency fund when we move house. I've transferred the money over from my savings into my current account.

My broker is shocked that they declined - I have excellent credit score.
What should I do? Appeal? Would you recommend I try a different broker? Could it be that they don't see me female partner as an actual spouse ?

Any advice greatly appreciated?

Annisele

Another possible way to look at this is that they *do* agree that your partner genuinely is your partner - and since she's not going to be named on the mortgage, they think she's dependent on you. A continuing payment of £600 a month does look quite a lot like a maintenance payment.

What does your broker suggest? If he just said "I'm shocked" and nothing else, then yes you do need a new broker.

menachael

I was paying the 600 as the house we were living in was solely in her name- her mortgage/bills/council-tax etc. I paid 600 and that was it, no other monthly commitments as everything was in her name. Now the house has sold that's stopped- instead, if we get this house, she will be paying me? Does that make sense?
If we make our situation really clear- would you recommend going to another lender?

GMS

Using your partners funds for the deposit when they are not party to the mortgage is an issue as they will have an interest in the property. Also as they own a property they cannot use HTB.

You are trying to fit a square peg in a round hole here.

Broker shocked is shocking! I am sure the brokers on here will think it was a non starter too

menachael

Yet as I'd been contributing to her mortgage for the five out of six years that she had the property, she gave me a share of the profit. She made over 40000 on sale of house and gave me 21 500. Over five years I'd helped towards renovating etc so broker said that shouldn't be an issue. As far as halifax aware mortgage is in my name with no mention of partner- that was advice from broker.

GMS

menachael wrote: »

As far as halifax aware mortgage is in my name with no mention of partner- that was advice from broker.

Until you tell them where the deposit comes from and they require a deed of consent for the partner residing.

Was the broker an estate agent one?

Thrugelmir

menachael wrote: »

As far as halifax aware mortgage is in my name with no mention of partner- that was advice from broker.

The source of the deposit suggests otherwise. Financial relations are built on trust. Underwriters are pretty astute. As there's nothing that hasn't been attempted before.

menachael

We went with a new home broker. And my partner wrote a letter stating they had no financial interest in the property. But the reason Halifax gave for declining was affordability? Do you think it's more to do with it being in my name? Would we be better forgetting help to buy and just purchasing property jointly? Can my partner have another mortgage when she already has one? She's not sold the other house yet?

GMS

menachael wrote: »

And my partner wrote a letter stating they had no financial interest in the property.

Which is untrue as they are providing the deposit.

Nothing wrong with having 2 mortgages subject to passing affordability and meeting LTV criteria.

menachael

I thought you could accept a gifted deposit? Is this not true? So angry at broker for advising us to take this path

GMS

menachael wrote: »

I thought you could accept a gifted deposit? Is this not true? So angry at broker for advising us to take this path

Family gifted deposit is fine so long as the donor will not reside in the property without being party to the mortgage.