Halifax Mortage application

Josh.hill

Hi All,

Just in the process of applying for HTB with my partner.

We have had the following:
i. AIP Issued and approved
ii. Met Mortgage broker to go through application and affordability etc... All advised to be okay.
iii. Application sent off and valuation money taken a few days later.
iv. Valuation carried out on Thursday 14th Jan and received letter to say okay.
v. Now awaiting offer.

My two questions:
I. My credit score has decreased due to a "first mortgage" search on my account - why is this?
ii. What's the likelihood of the mortgage being declined now?

I look forward to hearing response.

Thanks,

Josh

antsmusic1

Well, after the full application went off to Halifax (with a DIP of £100,000) our broker has come back today to say that after reviewing payslips specifically, the maximum they are willing to lend us is £55,000. Gutted doesn't cover it!!
Not sure how they have come to that figure, they have reduced the forecast of my partner's income from £24k to £22k but that's it. We have an expected LTV of 58% on the property we are buying.
Luckily (fortunately) I have investment funds that I can draw upon and increase our deposit... putting our LTV at 35% but I just don't understand how the amount they have agreed to lend is almost half what they offered in a DIP?
Any thoughts appreciated, my partner and I have some serious decision-making to do.....

Thrugelmir

antsmusic1 wrote: »

My, my, I've stumbled across the perfect thread!
I am submitting an application to Halifax tomorrow via a broker for a joint mortgage with my partner.
We got an AIP for £100,000 about 2 weeks ago. We have a very healthy deposit with a LTV of 58%.
I am a tad nervous due to our situation:
-I have an excellent credit score but am on a zero hours contract (not taken into account by lender) and £730/month income as a private landlord (also not taken into account by lender)
-My partner meanwhile has a very healthy steady income of £24k, but a default on a mobile phone contract in 2013. He also lives almost entirely in his overdraft, however the monthly mortgage payments would be less than what we pay in rent currently.
The broker specifically mentioned Halifax looks around minor defaults, particularly mobile phone contracts, and looks at the 'bigger picture'.
Have got everything crossed. Everything was disclosed to the broker before he got us the AIP so am feeling positive-ish!
Will watch this thread closely and we can all be in this together :D

Immediate issues are highlighted above.

I assume that there's a mortgage on the property you let out?

antsmusic1

Thrugelmir wrote: »

Immediate issues are highlighted above.

I assume that there's a mortgage on the property you let out?

Indeed, however the DIP was given with my income not being taken into consideration at all. The property I let out is mortgage free.

Mortgagewanted2016

So, update from me, full app on the 18th, requested payslips on same day, I sent them in and called to confirm receipt on the 20th... Lady on the phone said everything received and pending valuation should be passed to underwriters with recommendation to issue offer, since then they've requested proof of earnings from employer, valuation has been done and is satisfactory (valued at excess of asking price) so now waiting on work to confirm overtime and enhancement payments and then fingers crossed everything offered, I'm hopeful but still thinking it's going to go tits up... If it's got to this stage (3 hard searched on my file 1 on the 18th and 2 on the 19th) does this mean I have passed credit scoring and it's now down to affordability, or is the scoring all done at underwriting stage?

Thanks

MaebyJade

Mortgagewanted2016 wrote: »

So, update from me, full app on the 18th, requested payslips on same day, I sent them in and called to confirm receipt on the 20th... Lady on the phone said everything received and pending valuation should be passed to underwriters with recommendation to issue offer, since then they've requested proof of earnings from employer, valuation has been done and is satisfactory (valued at excess of asking price) so now waiting on work to confirm overtime and enhancement payments and then fingers crossed everything offered, I'm hopeful but still thinking it's going to go tits up... If it's got to this stage (3 hard searched on my file 1 on the 18th and 2 on the 19th) does this mean I have passed credit scoring and it's now down to affordability, or is the scoring all done at underwriting stage?

Thanks

Just a note on this, I phoned them to query if 3 searches for 1 application was normal, just out of curiously, and they apologised and removed two of them.

Mortgagewanted2016

I saw another post on here before about the searches and they said it's because they check you once as a sole applicant and the second search is the joint applicant, I'm not really too worried about the excess searches on my file as long as I get the mortgage lol, I have car finance and a credit card already so have no need to apply for extra stuff for the foreseeable future, unless of course they refuse the mortgage, then I may be worried about the searches...

bobothebear

I'm a few days behind you with mine.
Had our meeting on 21st to agree Mortgage terms etc and paid the valuation so waiting on that now.

Just checked my Experian and I have 3 Soft searches from 8th Jan(AIP meeting) and then 1 Hard Search on 21st which has dropped my Score from 986 to 969.

I am praying that nothing mucks this up now.

Mortgagewanted2016

Still waiting for employer to confirm salary ARRRGGGH, have queried with Halifax if everything other than that is fine, just got the standard once we have employers reference we will pass on to underwriters and let you know.... So so so so stressful waiting and wondering if I'm gonna get it...:(:huh::huh::huh:

WCN87

Hello All,

After being declined by Natwest (After AIP but before an underwriter) and Nationwide, we changed MA's who then looked at our credit reports, income, debts etc and she went away and found two potentials for us using the help to buy taking our circumstances into consideration.

We were told we would need to increase our 5% deposit from 14,000 to 24,000 house value £274,999 to meet the criteria with Halifax which we have done.

Our trail is as follows:

MIP with Halifax: 24/01/16
Meeting with MA: 27/01/16
Full Application processed meant to be today/tomorrow waiting for confirmation, no reply back yet.

She seemed quite confident, but as we have adverse credit, small satisfied defaults between us, credit card debt and a small car loan we are a bit sceptical.

Please hold thumbs for us.