The Moving Of Goal Posts: A Summers Tale

Mandalore

So, I just came back from my friendly neighbourhood Halifax branch. Where I have been trying to secure a mortgage for sometime. The broker just informed me that I need to provide £18,750 as deposit if I want to secure a mortgage for a property worth £125,000. I'm a bit stumped as I'm told I have really strong credit scores on both my profiles, and I have around £14,000 in the bank to cover my deposit and my legal expenses. Initially I only planned to front the 5% going through the help to buy scheme so what gives?

Can anyone make heads or tails of this? I was able to secure a mortgage through John Charcoal for the same amount with only having to put down the 5% deposit only a few months ago. My circumstances hasnt changed. The Halifax broker said they would inform some "back team" to take a look at it and find out whats going on.

libf

Halifax broker or Halifax mortgage sales person? The two are not the same!

Mandalore

Hello Libf,

Thanks for your swift reply. Just checked her title - It says "Mortgage Advisor" - I had an appointment with them. Last time I was with another advisor and they said that I could easily have a mortgage for 125,000 on a 5% deposit. What could have changed in such a short time for them to now request 15% of the amount?

charlamine

Hi Manderlore
no specific answer to your question but broker put our Help to Buy EL application through Halifax recently and they wouldn't accept 5% deposit and wanted 7% from us to provide AIP. We had to pull out of that application as the 2% increase meant an extra £10,800 for us.
Can only assume that they are tightening up on 5% deposits

Mandalore

Hi Charlamine,

Hope all is well. If someone fulfills the criteria of Help To Buy shouldn't they be eligible though? I have the 5% deposit, and they've worked out that I can be lended a maximum of £142,000. I need £125,000. Hell even if they increased it to 10% I can afford it. Am I better off just cutting my losses with Halifax and going somewhere else? If so do you have any recommendations?

Regards
Nick

libf

Mandalore wrote: »

Hello Libf,

Thanks for your swift reply. Just checked her title - It says "Mortgage Advisor" - I had an appointment with them. Last time I was with another advisor and they said that I could easily have a mortgage for 125,000 on a 5% deposit. What could have changed in such a short time for them to now request 15% of the amount?

Are you buying a new build? They usually require larger deposits...

Have you actually submitted information to get an AIP or done a full mortgage application? Maybe the credit search influenced them? Or other information on your out goings?

Have you spoken to any other lenders or tried any online affordability calculators yourself?

Mandalore

Hello Libf

It's an old build. And yes, I have submitted an agreement in priciniple with a full mortgage application - My last one was accepted in March but the property fell through as the owner changed their mind about paying for the extention on the lease before I purchased it.

Havent spoken to any other lenders but is this something I should be doing? I'm a first time buyer using the Help to Buy scheme.

libf

Mandalore wrote: »

Hello Libf

It's an old build. And yes, I have submitted an agreement in priciniple with a full mortgage application - My last one was accepted in March but the property fell through as the owner changed their mind about paying for the extention on the lease before I purchased it.

Havent spoken to any other lenders but is this something I should be doing? I'm a first time buyer using the Help to Buy scheme.

I would try some affordability calculators online to see what other lenders would be willing to give you, unless you have special circumstances that mean you're better placed with a broker; self employed, debts, CCJs, etc.

-taff

Is there a reason you haven't used an independent broker?
Only because I found I had much better deals avaialable through them than with the people I currently have mortgage with.
I might be paying them a few hundred pounds but as far as I'm concerned I'm more than happy to do that.

Mandalore

Hi Taff, thanks for your reply. Addressing the question the reason I havent is because I'm new to all of this. I should really start looking.