Halifax 95% issues

ChaddyBouy

Hi all,

We got our DIP from Halifax for a 95% just over a week ago for 199k (stamp duty will be paid for by Halifax) and seen a house we loved. We put an offer in of 140k which has since been accepted.

Now comes the issue, our broker who has seen our credit reports etc. has then submitted our full application today and it's came back and offered us only a 90% mortgage. This is obviously something we can't afford so our broker has already spoken to her BDM and lodged an appeal. We don't have any late payments or defaults, both have been on the electoral role for a while. I have a car finance agreement which runs out in 13 months time at £200 per month and that's about it. Only issue is my OH hasn't really had credit before but banks with Halifax so hopefully they'd be able to see her money management ability albeit without any large credit agreements.

How does their appeal process work? Does it get manually reassessed by someone rather than the computer saying no? From experience what are the chances of getting this decision over turned and will the Halifax explain why we have been offered 90% instead of 95%?

Our broker has said there are other lenders out there who score differently but the issue is we then don't have the cash for stamp duty which would prove a stumbling block. All advice hugely appreciated through this stressful process.

kingstreet

... and yet another "Halifax Mortgage Promise not worth the paper it's printed on" thread.

Halifax carries out only a soft search for an agreement in principle, so you often find you pass a DIP at a higher LTV than at full application stage.

In addition, Halifax will be "tweeking" it's credit score practically daily at the moment, on the run-up to MMR at weekend.

I'd expect a broker to be aware of this and to manage client expectations better with a Plan B, just in case.

Presumably, the broker puts the situation to the BDM and the BDM refers it to a Business Assessor, or Credit Decisioning. No way of knowing what the outcome might be...

ChaddyBouy

Thanks kingstreet. I had read plenty before that were linked to issues in the 3-6 years worth of history - something we don't have which has led to my post!

Pinhead2014

apply for a credit card and do a balance transfer for £7,000

gstadt

I thought an 'a' credit score was up to 95% LTV, and the next band was a 'b' pass limited at 85% LTV?

Wasn't aware LTV's with the Halifax could be limited at 90%, in between an 'a' and 'b' pass?

kingstreet

gstadt wrote: »

I thought an 'a' credit score was up to 95% LTV, and the next band was a 'b' pass limited at 85% LTV?

Wasn't aware LTV's with the Halifax could be limited at 90%, in between an 'a' and 'b' pass?

About 50% of Halifax HTB - MG 95% apps get down-shifted to 90% at DIP, or later at full application, IIRC.

Kaela90

oh no. i am a first time buyer and i had my decision in principle with Abbey at 95% LTV but the lending criteria changed and now they only offer 80% LTV on flats.

So my broker has advised that i go with Halifax.. she didn't seem to think there would be a problem and I have a DIP.. i just paid £280 for a valuation. I assumed this meant it was pretty much a done deal? I guess from the posts above that this isnt the case...

kingstreet

If you've paid the valuation fee, you must have passed at full app, otherwise the fee wouldn't have been requested.

emma768

kingstreet wrote: »

If you've paid the valuation fee, you must have passed at full app, otherwise the fee wouldn't have been requested.

Sorry for asking so long after this thread was posted - is this definitely the case? Me and OH have had to pay valuation fee and now mortgage product fee (which hasn't gone out yet) but the mortgage is being "written up" today and sent to head office tomorrow. I'm still nervous that we won't get accepted and have to try and find another 5% from somewhere!

Is that unlikely now we've had to pay out nearly 1300 in various fee payments?