Halifax Mortgage Application

Mo87

Hi Guys,

I was after some advice, I am looking to purchase my 1st property along with my partner. The house we have found is at £252,950, we have a 5% deposit available and can go higher if required. We want to take get the
the Help to Buy 20% Equity loan, with the idea once we have a property we will make overpayments to chip away at this balance.

Going back to 2012/2013 I had 6 Defaults, smallest sum being £150 and the highest £1250, all have since been paid in full and updated on my credit file. Since then I have not borrowed any money etc and not had any payment issues for at least 36 months, the majority of the defaults will drop off my credit file within the next 18 months or so. My partners credit file is clear with no late/missed payments etc.

My partners salary is £20,000 and mine has a basic of £16,000 plus commission, I earn typically £1000 - £1500 on top each month.

Our combined outgoing are;
Rent + bills £950
Company car scheme £279
PCP £315
Car insurance £60
Phone bills £80

'Debts' ?
Partners student overdraft £2000
Partners credit card £750

Would the above 2 have an impact on the application ?

I had spoken to New Homes Mortgage Helpline who told me I was declined by a high street lender but I couldn't see anything on my credit file to this effect, but they had got me an acceptance with Precise Mortgages. Since I was recommended another broker, I spoke to them on Monday and sent over my credit file along with; our ID, 3 x bank statements, 3 x payslips and proof of address and she came back to me with AIP from Halifax much to my surprise.
I know many on here mention the AIP's don't really mean anything other than you passed their initial threshold score.

I have a credit card with Halifax with a zero balance, when I went through my financial issues I already had the account and they capped the balance at £750 until it was cleared last year, Since then they have twice increased the credit limit without me applying for it and it is now at £2750 which is a good sign I guess.

My Mortgage Advisor has applied for the Help to Buy Equity loan for us as this takes a couple of weeks and will have some paperwork out to us next week to sign and return. Apparently it is better to have this in place before submitting the full application.
I have been told I need to pay a £500 fee for valuations etc. however a little concerned that when it goes to this stage it could be declined because of my past history or am I being a stress head.

Once they submit the application typically how quickly could you expect to hear back with a decision subject to a valuation etc ?

Just after some advice and re-assurance :money:

amnblog

What a tricky situation for you.

One source sending you to Precise, the other to Halifax with a bit difference in rates and costs.

If the broker handling the Halifax application has managed things correctly, it is worth following up. Another score from them to submit a full application will not preclude you from going back to Precise if you need to later.

Once your have passed credit score on full application with Halifax you are 90% there.

Have you seen a decision in principle certificate from Halifax? If not proceed with caution. It is no unusual for brokers to take about dips they have not actually yet processed.

Mo87

Hi,

Yes I was emailed the AIP "A mortgage is available of £205,200 to ..."

New Homes Mortgage Helpline seem like quite a big operation from my understanding, the person I am dealing with now is literally a 1 person operation, after my initial call she suggested we try Halifax if I hadn't already and see what happens and she came back very quickly to say we had the AIP and a certificate on my emails.

Thanks

amnblog

Sounds promising.

amnblog

Mo87 wrote: »

New Homes Mortgage Helpline seem like quite a big operation from my understanding

Owned by Connells Estate Agents. Draw your own conclusions.

Mo87

Ah okay ...

From your experience what should happen next, as mentioned my broker has applied for the equity loan ? Does this need to be done prior to the full application or does it help having this in place and strengthen your application so to speak.

Would you recommend we pay off my partners credit card £750 before full application ?
What is the best thing to do re her Overdraft.

My broker has suggested we try to sell the car or reduce the payments but this can be done before completion so near enough 6 months.

Any idea how quickly you can find out if your full application has been accepted subject to valuation etc. ?

Thanks

amnblog

Speak to the new broker about these points.

Halifax can technically agree everything same day subject to valuation. but this is conditional on your having your equity loan offer.

Mo87

Ok so it would be beneficial to get the equity loan in place before the full application is submitted.

She has mentioned she is going to send me over the paperwork for this to sign in the next couple of days, I assume I have to check and sign before they submit the application > any idea how long it takes to get the decision on this back ?

Thanks

amnblog

Normally you can get the equity loan offer, or Form of Authority to Proceed back in a few days.

I would not submit the main mortgage application without it. If there is a problem with the equity loan the mortgage application would be a waste of time.

Mo87

Amazing, so hopefully we should be able to put the application in this week.

Nerves are getting the better of me

amnblog

It takes a little time but your new broker should be reducing the stress for you.