Halifax application advice please after HSBC rejection.

jb8285

I have a telephone appointment with Halifax tomorrow to apply for a mortgage.
I earn 58k per year and will have committed credit payments of £670 per month once a mortgage completed.
I want to borrow £243k with a 52k deposit. According to the calculator it's within the affordability. I put an AIP through online and it's told me to call them with a reference number so I assume this means referred.

I had an application declined after valuation by HSBC because I completely forgot to declare one small credit account which shows a balance on my credit file. I did try and appeal that but with no luck.

I do have a large amount of unsecured credit across low or 0% credit cards and hire purchase £47k in addition to personal loans totalling £670 ( as above).
I have sold my house and with the equity can comfortably afford the deposit and clearing the £47k in full.

I have never missed a payment, had a default CCJ etc at any time.
Will Halifax actually look at this with a human approach or will it be an instant decline? I have done some soft searches with other lenders but they all come back as decline, I'm assuming because of the credit balance.

One final point, I am married but I do not wish my spouse to be on the mortgage or the deeds, with Halifax accept this. It was no issue HSBC (current lender).

minimike2

You would be better approaching a broker rather than lining up lenders in a row.
Your debt to income ratio is huge and despite the clearing of some of this many lenders don't care that the debt is being repaid and will factor in into their assessment anyway.

jb8285

Thanks for the reply. Will it be worth speaking with Halifax and asking if it can be a conditional offer that credit is cleared before funds are released? If necessary we could put everything into storage and complete the sale before the purchase.

Thrugelmir

jb8285 wrote: »

One final point, I am married but I do not wish my spouse to be on the mortgage or the deeds, with Halifax accept this. It was no issue HSBC (current lender).

Perhaps it was in part behind the rejection. Obvious question is why not. As may answer much more.

With regards to your current debt levels. Could be that lenders will be uncomfortable. After analysing your credit history. Smoke and mirrors as they say. Hiding what's really going on.

jb8285

Several years ago when I bought the current house I was gifted a large amount of money from my dad, it was agreed that the house would be purchased in my name only.

jb8285

Surely being able to evidence that the debts are cleared by delaying purchase after sale would alleviate any concerns?

minimike2

There is no point asking a stack em high and sell em cheap (well, not cheap as far as Halifax goes, but en mass none the less) lender to start looking at special cases. That isn't their business model.

I'm not saying they won't do it, I'm just saying you need to engage a broker really on this one. You might get lucky with Halifax, you might not.

Like I said, some lenders will factor in debts being repaid regardless of the fact they are being repaid, because of the propensity of borrowers to repay and then go and re-borrow again. Some will also straight decline a case based on the DTIR regardless of if it is being repaid. It's all about risk modelling and it is pointless in arguing the toss.

They will already put conditions in the offer that any debt declared as being repaid is done so within 30 days of completion - It will not make them change the way they assess the application.

Typhoon2000

How much is the total debt? Would selling the car clear the big majority of it? If so, you should do that first and use the 47k you have to pay off the hire purchase to clear your loans, before applying.

jb8285

I'm not in a position to clear the credit without selling the house. I guess if I get a decline I'll have to try applying again once the house is sold.

csgohan4

how much money will you have after you sell your house including the deposit??


Careful applying for too many mortgages in a short space of time, this will hurt your credit file. Don't go for a shot gun approach, go for a broker who will usually make it right the first time than hit and hope approach which you are doing

jb8285

I have over 110k after all fees are paid which is more than enough for the 52k deposit and the 47k debts.
I'm in a better job now so my financial position is much stronger I've already cleared some debts as a result. As I said I've never missed any repayments and they're is absolutely no adverse credit.