Mortgage offer made but credit application needed due to car lease scheme at work

kingstreet

MartiMcfly wrote: »

Your broker will be earning his commission at offer

Really?

Most lenders don't pay until completion.

kingstreet

There is no point ringing Halifax and explaining, as this is a mostly automated system with very little human involvement.

If you make an application for new credit between agreement in principle and completion, a credit search is going to be logged on your credit file and the Halifax system which re-scores you at every point (including alterations) is likely to pick this up unless you complete within the period before Halifax updates its feed from Experian in the second week of the month.

If it is picked up, your broker should go back into the application and re-key the credit commitments to reflect the change and have a re-decision and hope your HBoS score remains strong enough to remain an "accept" rather than a decline. It goes without saying, affordability has to remain above the required level.

Person_one

Has your husband told his employer that he is currently applying for a mortgage and asked to delay the change and the credit check until after completion?

MortgageMamma

Your broker sounds like a proper lazy sod. All he/she needs to do is recalculate affordability, make sure it fits, make an alteration with the lender and see if its accepted and at least then you would know where you stand. There is absolutely no reason other than being bone idle why he can't pick up the phone and speak to his business development or other contact at Halifax and go through this. Be assertive!

Bardo_Pond

Thanks for all the info/advice everyone.

Affordability wouldn't be an issue as husband gets a payment of approx £200 pcm towards the scheme therefore would be slightly better off than what he is now with current rental vehicle.

It's in his employment contract that he needs a car less than 5 yrs old (he works as a manager for a large company), or can use their lease scheme - he would get a contribution of approx £200+ p/m from employer whichever he chose.

MortageMamma your comment made me chuckle! Obviously we're at the mercy of what the broker tells us and due to him being very vague about how Halifax would deal with this we didn't want to risk my husband taking out the employee lease scheme.

His employer have told him he can buy a car (of any age as opposed to the normal rule of no older than 5 yrs) and use this instead of the lease scheme.

Now just to wait till the house is build in September...

Bardo_Pond

marksoton wrote: »

This still seems bizarre.

My company lease my car not me. I have never heard of this setup where the employee is liable for the credit check or lease unless they are just in receipt of a car allowance.

I really wouldn't trust that a binding lease contract would terminate if his employment did. It's HIS agreement not his employers in this scenario.

Mmmmm, he does get a car allowance from employer so maybe that's why it's his lease agreement and not theirs? I know the lease is for 3 yrs, then he has the option to buy the car or get a new lease (sorry, off topic).

kingstreet

So the car allowance would be treated as income and the cost of the lease a credit commitment.

I can think of lenders who add car allowance to basic, rather than like overtime, so 100% is taken into account rather than 50%.

Bardo_Pond

kingstreet wrote: »

So the car allowance would be treated as income and the cost of the lease a credit commitment.

I can think of lenders who add car allowance to basic, rather than like overtime, so 100% is taken into account rather than 50%.

Thanks Kingstreet, that's useful to know.

As employer couldn't hold off putting him on the works car lease scheme till after completion (they'd already sorted him out with a rental car since he started 8 mths ago) they have compromised by letting him buy his own car and use this for work - they've waived their contractual policy of own car having to be no older than 5 yrs old so he can buy a cheap runaround till completion.

Husband just didn't want stress of any issues with the Halifax changing terms (or their mind completely). Especially as we're buying off plan with completion not due till October.