95% LTV refused but offered 90% LTV

FirstTimeBuyer._2

I was told by my mortgage advisor that Halifax have refused to offer me 95% LTV mortgage under the Help to buy 2 scheme . However, they are happy to offer me a 90% LTV mortgage.
This doesn't make any sense as 90% LTV mortgage would be more risky for the lender as compared to a 95% LTV mortgage as 15% of it would be covered by government guarantee:huh: :wall:.

Can someone please shed some light on this?

CKhalvashi

It will be a commercial decision, the reason why I don't know, and the bank probably won't tell you.

The most likely cause will be availability concerns, but that's at a huge guess on my part.

kingstreet

Your Halifax credit score was insufficient for them to offer you 95% for some reason.

HTB doesn't mean the lender sees 95% as less risky. Some of what you pay on such a mortgage goes into the indemnity fund which covers repossessions, which incidentally, lenders strive to avoid.

The Government guarantee only kicks in if the fund is insolvent.

If you haven't already done so, obtain all three versions of your credit file and ensure there is nothing untoward.