Help to Buy with Halifax

Hutch100uk

I used a broker to help get a mortgage using help to buy on a new build property. He used our info to check affordability against a number of lenders and Halifax came up best with a good rate and cashback.

Not sure how this all works but I believe they do a 'soft search' first but then when they have done the hard search, we were £10k short!!! The broker said he believed my credit cards were the problem so if I paid those off it should be fine (balance is only £2500). I asked if I paid off the highest one would that help and they said yes. So, off I go and pay off £1400 on one of the cards, only for the broker to come back and say we are still £800 short on the mortgage.

The broker handling my application wasn't in to speak to so I ended up just going ahead which will mean adding £800 to the deposit.

He didn't include my bonus on the application as he said he wouldn't need to, so why not then include the bonus when the mortgage came up short??

I'm not happy with this at all and have left a message for him to call me first thing. Its my first time getting a mortgage so am new to all this. Does this sound normal or does it sound like my broker isn't very good?

Barney72

We are the same I complete next Friday on a new build. We went with broker attached to the builders he chose Halifax as best bet when it came to submitting full application they changed their initial yes to a no and asked we put another 5000 deposit down. It's also a help to buy mortgage.

Hutch100uk

Barney72 wrote: »

We are the same I complete next Friday on a new build. We went with broker attached to the builders he chose Halifax as best bet when it came to submitting full application they changed their initial yes to a no and asked we put another 5000 deposit down. It's also a help to buy mortgage.

Hi there, this wasn't even at full application. That has only just gone in now. I can only assume it was something to do with the affordability check. I'm very confused as to why he said it all fitted, then it came back £10k short.

Very suspicious also that the cashback deal with the Halifax mortgage ended that very evening......

So what did you do? did you have to stump up the extra cash?

Hutch100uk

Actually I assume it was a the AIP stage, they decided they would only lend us £10k less.

Thrugelmir

Lenders will look at the individual circumstances of each application. They set the terms of the offer made. Internal policy can be tightened or loosened at any time. Normally in response to the level of demand for a product.

Hutch100uk

Thrugelmir wrote: »

Lenders will look at the individual circumstances of each application. They set the terms of the offer made. Internal policy can be tightened or loosened at any time. Normally in response to the level of demand for a product.

Is it possible to submit my bonus information after the application has already been submitted? I would hope this would help make up the shortfall as its £3k per annum.

Annoyed my broker didn't just include it anyway.

Thrugelmir

Hutch100uk wrote: »

Is it possible to submit my bonus information after the application has already been submitted? I would hope this would help make up the shortfall as its £3k per annum.

Annoyed my broker didn't just include it anyway.

You need to ask your broker why. A bonus is not guaranteed income but potentially variable. So how much a lender will take will vary.

Barney72

Yeah my broker said either stump up more money or he could look for other lenders but he thought Halifax was out best chance

Hutch100uk

Barney72 wrote: »

Yeah my broker said either stump up more money or he could look for other lenders but he thought Halifax was out best chance

Well if they move the goalposts again I will have to go with another lender!

kingstreet

We don't include income where either it isn't required, or where it can't be evidenced to the lender's satisfaction for it to be included.

For example, if your bonus is annual and paid in April, you would need to provide the April 2015 and April 2016 payslips to prove it and either the lowest of the two, or the average will be used, depending on the lender.

Often if the affordability at DIP differs from the initial affordability calculations it is because the applicant hasn't disclosed the correct credit commitments by missing something, or their credit card balances are still showing from a few months earlier and are not up to date.

We would discuss with our clients ans resolve by using any additional income, or by establishing what exactly the lender can see by obtaining the relevant credit file.

Hutch100uk

kingstreet wrote: »

We don't include income where either it isn't required, or where it can't be evidenced to the lender's satisfaction for it to be included.

For example, if your bonus is annual and paid in April, you would need to provide the April 2015 and April 2016 payslips to prove it and either the lowest of the two, or the average will be used, depending on the lender.

Often if the affordability at DIP differs from the initial affordability calculations it is because the applicant hasn't disclosed the correct credit commitments by missing something, or their credit card balances are still showing from a few months earlier and are not up to date.

We would discuss with our clients ans resolve by using any additional income, or by establishing what exactly the lender can see by obtaining the relevant credit file.

I genuinely think my broker told the lender our cards would be paid off and that is why they were an issue. He asked me outright if they would be cleared and I said no. When the office rang to say there was a shortfall, they mentioned something about they had down on our file they would be cleared.

I get 2 bonus payments per year so am able to provide the last 2 years of bonus payslips.

When I speak to the broker tomorrow I hope he has more answers for me.