Can't afford a cheaper mortgage????

Motherofdragontwins

So, I was a FTB in 2013. Used the government scheme FirstBuy.

Have applied to access some of the equity in the house and Halifax say I can't afford the new mortgage (I am on maternity leave at the moment going back full time in July).

However...

I just re-arranged my mortgage to a lower rate as my 2 yr interest rate was ending. I save £160 a month.

My question is why do they decide I can't afford it when I was paying a higher mortgage only last month???

Thrugelmir

Affordability checks are based not only on the lenders own criteria but also on generic hurdles. As laid down by regulatory bodies. So guidance is that stress testing at 7% interest rates is done for example.

TrickyDicky101

Are you did there will be equity to access given the relatively short timescale from original purchase to remortgage? Do you live in London, perhaps?