Halifax reducing my offer

susanneblue

hi,

2 weeks before my offer expiers from the halifax, i had to change lawyers,

advised halifax who said they would re issue paperwork.

had to chase them, now being told that that have reduced my mortgage offer bay £10000, they cant tell me why!!

how can they do this?

dont understand why i we re scored when they were just to send amended paperwork.

Help!!!

kingstreet

Every time an amendment is made, the case re-scores.

Have you applied for any new credit since submitting the application or increased any existing credit commitments?

Is it a lower loan to value being offered, or a lower borrowing amount due to affordability?

susanneblue

they are offering a lower amount i think to due affordabilty, i had to put 2000 on my credit card, which i have been paying off quickly, to get it down., dont understand how it can reduce the amount by £10000

kingstreet

It's based on affordability, not the amount outstanding.

The system uses 5% of the card balance and calculates that into a monthly mortgage cost from which your borrowing power is reduced accordingly.

5% of £2,000 is £100 per month and assuming a rate of about 7% per annum, £10,000 costs about £10 per £1,000 or, £100 per month.

You need to get in touch with your broker and let them know what you've done. Provided the increased card debt will be repaid before completion, it should return you to previous mortgage amount when reported to lender.

susanneblue

thank you, have spoken with my advisor who has contacted the halifax, they are appealing, but i have managed to pay £1000 off my card tonight hopefully more next week. fingers crossed.

kingstreet

There's no point paying it off immediately as it takes a month for the credit system to update for the lender to see it, unless it was a Halifax credit card?

Telling them the card debt will be paid down to what was on the application in the first place should be sufficient if it was an affordability reduction and not for credit score...

susanneblue

Hi ok, phoned halifax again they are not sure whats going on, it seems as my offer was near to and end when i changed lawyer they couldnt find my existing rate on their system, so in trying to get me the same rate it has triggered a whole new application! Yet today ii received a new illustration with the new interest rate and the same mortgage amount i was originally offered, so getting confused how i am now being told the offer is 10000 less.

susanneblue

Thing is also the house i am buying is worth 45000 more than im buying it for, so there is a lot of money sitting in the house dont know why this isnt taken into account.
My credit card is 0% so not costing me anything but not a halifax card

susanneblue

Sorry to go on, my original offer was produced on January 31st this extra money i have on my card was put on in November so this would have shown to them already and have been paying it down over 100 pm since my credit score is also ok so this is why im confused about it all

kingstreet

The loan to value is the amount you are borrowing divided by the lower of the purchase price or the valuation; unless you are buying as a sitting tenant or from a relative using what's known as a concessionary purchase.

If this is about affordability, the value of the property is irrelevant anyway...

susanneblue

I currently live in the house and buying from mother in law