Additional Borrowing refusal (DLA)

Babababa

I have had a Halifax mortgage since 2000, never missed a payment and perfect credit score! I was made redundant a couple of years ago but walked straight into another job, so I used my redundancy to pay off most of my mortgage (over 60,000). I now have a mortgage of £25,000 remaining over 15 years.
Lately I started to do some work at the house so wanted to increase my mortgage again by approx 12,000, but have been turned down at the initial offer stage. The house is worth over 250,000.
The Halifax mortgage adviser is saying the reason is because I have just purchased a new car which still has £20,000 left to pay. My isssue is, as I explained to her, this is a car that is paid for from my sons DLA each month as he has Autism and has special requirements.
However she won't take the DLA requirements into consideration for income. Ironically they will offer me a personal loan which in my mind doesn't make sense!
Has anyone any experience of this or any advice they could give me?
Thanks
Philip

Tufa

Why don't you apply with a different lender by remortgaging with additional borrow on the top?
You might get a better deal as well..

Babababa

Hi Tufa, thank's for the reply!
Yes I'm considering that, I don't think I'd get a better deal than I'm on at the minute but if I'm forced to take a loan out then this could be better!
I've raised a complaint with the Halifax so will give them a chance to see what they say!

sal_III

Depending on the rate and whether you can afford the monthly payments a short term loan might be a cheaper option than slapping the 12k on a 15 year mortgage.

Do the math, before dismissing the loan just because rate is currently 1-2% higher for example.

minimike2

They will not use the DLA because it is not your DLA. It is your Son's.

Amst

Babababa wrote: »

Hi Tufa, thank's for the reply!
Yes I'm considering that, I don't think I'd get a better deal than I'm on at the minute but if I'm forced to take a loan out then this could be better!
I've raised a complaint with the Halifax so will give them a chance to see what they say!

What are you complaining about? That they won't lend you their money due to you being up to your eyeballs in debt?

sheepy21

Other lenders will accept dla as income, nationwide is one, as well as rbs

minimike2

sheepy21 wrote: »

Other lenders will accept dla as income, nationwide is one, as well as rbs

It's nothing to do with Halifax not accepting DLA. They do accept it.

It hasn't been accepted because it isn't his DLA.

Thrugelmir

Babababa wrote: »

However she won't take the DLA requirements into consideration for income. Ironically they will offer me a personal loan which in my mind doesn't make sense!

From the lenders point of view makes commercial sense in this low interest rate era.

Babababa

minimike2 wrote: »

They will not use the DLA because it is not your DLA. It is your Son's.

This is correct, it is my sons DLA, however he is 9 years old and the government won't pay it into his account, nor will the car dealer sell a car to a 9 year old so the car is registered in my name. We do have another car which is fully owned and used everyday, this car had to be specifically purchased to suit his autism needs. It would have been great, before someone says it, to get at motability vehicle, however he has only been awarded a middle mobility rate as he can walk without pain so doesn't get the higher rate required to qualify for a motability vehicle.

sheepy21

minimike2 wrote: »

It's nothing to do with Halifax not accepting DLA. They do accept it.

It hasn't been accepted because it isn't his DLA.

You're missing my point, they'll accept dla you get for someone else. My son's dla has just been used for our nationwide mortgage