FTB with Halifax

RaRasputin

Hi.

I’m sure this has been covered and I have searched and searched threads so I’m not covering old ground. But just looking for advice from anyone who has or is in similar position to me a first time buyer. Lots of the posts are quite old that I have found, so here goes

I’m a first time buyer.
I have a credit rating of 994.
I have a good salary that is regular
I have a deposit of 5%
I have a credit card that I pay over the minimum monthly
I always get into my overdraft of £750, as currently saving half my salary to prove I can afford mortgage payment
Was accepted in principle by Cambridge who then declined after the property valuation (next to commercial property)
Now been accpeted in principle by Halifax and valuation has happened but not heard back from my broker yet, they expect 7-10 days.

I get nothing is confirmed until I get the keys, but

A) will me being in my overdraft be a put off for Halifax?
anyone been in similar situation with Mortgage for Halifax as FTB?
C) what are Halifax stance on commercial property? They said to my broker in principle, was fine, but clearly had to do a visit first
D) any other words of wisdom?!

I understand EVERYONE has a different experience, just keen to know from anyone who has similar experiences to me, in particular Halifax:

Thanks!

ACG

Im not sure I understand the logic in using an overdraft to prove you can pay a Mortgage. Im not saying it is a problem, just that I do not get it.

The commercial property close by is a little hit and miss and usually down to surveyors discretion. Normally it is fairly easy to pre-empt. If you are looking to buy next door to a garage, that is likely to be a bigger issue than if you were buying 3 doors away from a florist.

Overdraft use could be a problem, but it all depends on the finer details - is it an agreed overdraft, does it cost you to use it, how long are using it for and how much are you dipping into it etc. I do not need answers to those questions, but those are the things underwriters tend to look at.

If you have a broker, I am sure they have done all of the checks before applying. The last thing they will want is another declined application as it is a waste of their time as much as yours.

RaRasputin

Thanks. I knew it would be something that forum users would pick up on, why use an overdraft? It really is just bezuae I’m saving so hard, but all I can or should do, is reduce my savings (as I put into an account I don’t touch) and then reduce my overdraft use. It’s an arrange bet draft I’ve had for many many years. Sometimes in it, sometimes not, but in itvrecenyiy, but never over my limit.

Funnily enough, the property is next to a garage. Should that be. A bigger concern in your opinion? It’s only a small garage, but still a car garage (not quick fit scale!)

Cheers!

amnblog

Given the property position your broker seems to have investigated that before submission, and kept you advised on the rest.

Your queries here will do nothing except disturb you. Your broker knows your case and is best placed to advise what may or may not happen. The experiences of another borrower with a different profile and different property are irrelevant to your case.

ConsumerMatt

You shouldn't need to be told that using an overdraft in order to save more money is illogical. It's lender's discretion though. The pure act of showing them you have savings has no real substance.

I'd be surprised if the house being next to a garage on merit was the one and only reason for rejection. Perhaps that particular lender was just overly fussy and got cold feet, or there is something specific. I know that doesn't help you but if your current lender accepts it, all will be revealed in your survey and the solicitor's searches. It could be something drastic like a history of sink holes nearby, the garage could be using dangerous chemicals, or it could be something minor like the garage has a pressure washer against your garden wall potentially causing damp.

I know from my solicitor searches a garage 100m behind my house was mentioned. I knew it was there and had no concerns but a 'potential' for contaminated land was noted. My surveyor then mentioned a slight smell of paint in the air from that area.

I'm not with Halifax but my lender took 7 days between survey and offer and between that time I was asked a few questions about my bank activity so I'm assuming that's the stage when they were more thorough with their checks.