Odd conversation with Halifax

andyuk01

I have an SO mortgage with the Halifax, i own 45% and the housing authority 55%

As my initial 2 year fix is almost up i phoned up the Halifax to enquire about remortgaging and fully staircasing to 100%

This seems to have utterly stumped them - the additional borrowing team said they would lend me an additional 10k based on the rise in the value of the share that i own, the new mortgage team said as i already had a halifax mortgage they wouldn't help, the re mortgage team wouldn't offer a mortgage for a property where the halifax already had a charge over the property

Is this just a general case of confusion or do i need to re-mortgage elsewhere (via a Broker!)

Can purchase the flat for 250k, halifax valuation 292k, in a perfect place for met line extension and cross rail connection so keen to move to 100% ownership asap

Thanks

Thrugelmir

andyuk01 wrote: »

the additional borrowing team said they would lend me an additional 10k based on the rise in the value of the share that i own,

the new mortgage team said as i already had a halifax mortgage they wouldn't help,

the re mortgage team wouldn't offer a mortgage for a property where the halifax already had a charge over the property

Not sure why you went round the houses.

Not a new mortgage.

Not a remortgage.

So leaves us with the additional borrowing team. The question is why only £10k?


On a very basic level what's your income and how much are you looking to borrow?

andyuk01

Trust me that going round the houses wasn't my idea

The additional borrowing team said that they would lend me up to 75% of the equity that i owned (the 45%) as the property has risen in value this equated to £10k

Salary £60k, looking to borrow £225k ish (£250k value from the housing association, less the £25k i put down as the initial deposit on the share i purchased) access to another £20k to top up deposit if required

Credit score is fine, no children or dependents

kingstreet

Many lenders will not have a clue how to go about staircasing on shared ownership. Technically, its a combined internal remortgage and new borrowing to purchase further equity, if you want to remain with the same lender.

An independent broker with experience of this would be a better port of call for help.

andyuk01

Thanks

I was (naively) expecting this to be relatively simple given my salary, current mortgage and savings are with Halifax and their own affordability calculator suggests the amount isn't an issue

Looks like a broker it is then

kingstreet

andyuk01 wrote: »

Thanks

I was (naively) expecting this to be relatively simple given my salary, current mortgage and savings are with Halifax and their own affordability calculator suggests the amount isn't an issue

Looks like a broker it is then

The difference is the shared ownership element. The rest is straightforward.

You tend to find most of the technical expertise is concentrated in the broker divisions of the major lenders.

Goldiegirl

I used to work for the Halifax - I left them 5 years ago.

Up until the time that I left, this type of tranaction was quite normal.

What you are looking for is a further advance on your current mortgage, to purchase the remaining share of the property.

The additional borrowing team people are the right ones to talk to.

Possibly you didn't get the message over to them that, at the end of the transaction, you'd own 100% of the property, so the lending can be based on the full valuation of the whole property?

Unless things have changed very much since my day, this is certainly something that Halifax should be able to do without too much fuss.

Indeed I processed further advance applications like this on a regular basis.

Incidentally, if you did get them to understand what you wanted, a solicitor would have to be instructed, to deal with the purchase of the remaining share of the property.

davidmcn

kingstreet wrote: »

The difference is the shared ownership element. The rest is straightforward.

You tend to find most of the technical expertise is concentrated in the broker divisions of the major lenders.

Is the shared ownership bit even relevant? As the mortgage will be over a 100% owned property, any standard mortgage product will do.

amnblog

davidmcn wrote: »

Is the shared ownership bit even relevant? As the mortgage will be over a 100% owned property, any standard mortgage product will do.

Irrelevant it may be, but the Halifax mortgage adviser had dropped his crayon when they covered that bit in the training session.

andyuk01

Goldiegirl wrote: »

I used to work for the Halifax - I left them 5 years ago.

Up until the time that I left, this type of tranaction was quite normal.

What you are looking for is a further advance on your current mortgage, to purchase the remaining share of the property.

The additional borrowing team people are the right ones to talk to.

Possibly you didn't get the message over to them that, at the end of the transaction, you'd own 100% of the property, so the lending can be based on the full valuation of the whole property?

Unless things have changed very much since my day, this is certainly something that Halifax should be able to do without too much fuss.

Indeed I processed further advance applications like this on a regular basis.

Incidentally, if you did get them to understand what you wanted, a solicitor would have to be instructed, to deal with the purchase of the remaining share of the property.

Hi,

I was very explicit in my explanation of the situation and desired outcome, sounds like either things have changed since you left or i just happened to get the short straw once i reached the correct department

Thanks

andyuk01

davidmcn wrote: »

Is the shared ownership bit even relevant? As the mortgage will be over a 100% owned property, any standard mortgage product will do.

It really seemed to throw a spanner in the works when i mentioned that i had a SO mortgage already and wanted to move to 100% ownership

I initially thought this would be as you suggest, a remortgage to a standard product, i even had a look on the intermediaries sight to select the most appropriate product ahead of the call

Frustrating would be the best way to sum up the 30 min or so i spent on the phone