Halifax LTV - Underwriter appeal?

Jb75

Hi All,

Looking for some advice/information if anyone can help?

My wife and I have applied for a mortgage through a broker. Following discussions we were advised that Halifax was the most suitable for our needs. API (I know its not a guarantee) was approved and we were advised that we could obtain LTV 85% on a property of 299k.

However, prior to completing the mortgage application in full with the broker, I noticed that Halifax had revised its products (1/5/15) with maximum LTV of 80% on new builds.

I queried this with mortgage broker, who assured me that he could access 'exclusive products due to their relationship with Halifax' and provided a KFI for a 85% LTV product. Having agreed he submitted the application and called back the same day to say that it had been restricted to 80% LTV due to the credit score. Having read various threads I understand that Halifax score A,B and C but he didn't clarify which band etc. A soft search (several) were conducted by Halifax on experian the same day, so I have no doubt that the credit checks have been done. Only issue on our file is a lack of non-mortgage credit in my wifes name.

Anyway, he has stated that he has spoken with the 'specialist new build' team and he has appealed the LTV with the underwriter .. using our existing mortgage account as evidence of good repayment history etc.

So, my question is:

1) Is it probable that the LTV is restricted on this product due to credit score... or (Im sorry to be a sceptic) is this just a reflection of halifax new build LTV restriction to 80% maximum and I have received bad advice.

2) Can an underwriter increase a LTV offer at appeal?

Thanks for any advice (Its driving me crazy thinking this over and no resposne due until Tuesday :-/ )

JPB123

Halifax's max LTV of 80% has been in place for years, not since 01/05/2015. There are products available up to 90% if the broker is on panel (and the builder). I am on panel, as is Kingstreet on here, because we specialise in New Build.


It's possible that your broker (if they've got access to special products) may be right as a lower score can result in a lower LTV maximum. However, being an old cynic, it could be they didn't check criteria and they're trying to blag it.

I am an Independent Mortgage Adviser

You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.

Jb75

Thanks JPB123, giving them the benefit of the doubt (I tend to be a cynic myself), is it probable that an underwriter can increase the LTV? The broker suggested the initial decision was made by a computer and the underwriter might take a different view given our good mortgage history.

betmunch

I'm under the impression the Halifax max LTV on new builds has been 80% for as long as I can remember.

I believe Kingstreet is a new build specialist so would be worth waiting on him to reply would be a good idea.

If its confirmed that there are no special new build products with a higher LTV available then you have been badly advised and the advisor should make good on any losses you made due to applying to Halifax, assuming he was made aware you were buying a new build

Jb75

Thanks betmunch, I think he might actually be on a panel as he was recommended by the builders.. maybe just me being neurotic :-/

JPB123

Jb75 wrote: »

Thanks JPB123, giving them the benefit of the doubt (I tend to be a cynic myself), is it probable that an underwriter can increase the LTV? The broker suggested the initial decision was made by a computer and the underwriter might take a different view given our good mortgage history.

Is this an independent broker or EA based? I specialise in New Build and I don't think I've ever come across a case where the underwriter will increase the LTV due to good payment history.


If the builder and/or broker isn't on the panel, I would say you're stuck at 80%. Even the big players are not always on panel. Taylor Wimpey weren't on panel for NewBuy with Abbey, and they're right up there in terms of size. Smaller developers sometimes don't even get a look in.

I am an Independent Mortgage Adviser

You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.

Thrugelmir

Jb75 wrote: »

The broker suggested the initial decision was made by a computer and the underwriter might take a different view given our good mortgage history.

Underwriters have degrees of discretion. But not the ability to go outside Company policy.

Jb75

JBP123 Thanks it's an independent broker - recommended by Taylor Wimpy.

Thanks for the feedback

kingstreet

Only just seen this.

Halifax has top ten and top twenty products only available to specific builders and their brokers.

On our Crest Nicholson cases, we can do HTB - Mortgage Guarantee upto 95% with Halifax and also have products upto 85% and 90% inbetween as JPB said.

AFAIK, if the system says 80%, that's all you'll get. Human beings don't have the power to increase the LTV AFAIK.

I've just seen a thread about Aldermore from the OP so I'm assuming Halifax went south.

kingstreet

Halifax "top twenty" products for;-

Barratt Homes
David Wilson Homes
Ward Homes
Linden Homes
Galliford Try
Bellway Homes
Miller Homes
JS Bloor Homes
Persimmon Homes
Charles Church Homes
Westbury and Hillreed
Bovis Homes
Redrow Homes
Crest Nicholson
Taylor Wimpey Homes
Keepmoat
Countryside
Stewart Milne
Kier
Ben Bailey
Bett Morris
Lovell
Cala
Gleeson Berkeley
Berkeley First
St. Edward
St James
St George

Jb75

Thanks Kingstreet,

Hopefully this will be helpful to others too. Yes Halifax went South... Mixture of max LTV of 80% and then the credit reference at application showed up a default on call credit. We had been open about the default from day 1 £750 from BG in 11/2009 - only appeared in April this year and we have disputed it.... But as others have found....

Halifax -API
Credit check (experian) and valuation fee taken
Application and credit check (call credit) - refused