Please Help! Stubborn Lender?

richgazza

I am currently on a fixed deal with the Halifax, however my deal expires in June 2008. I have since accepted an offer on my property and have found the ideal house! Trouble is, there has been changes to our personal circumstances, income lower than before, also since losing my father last year, forking out expenses for travel, accomodation during the hospital visits, I did have problems managing my outgoings. Since then I have had to go on a reduced payment plan with many of my creditors, but thanks to AMERICAN EXPRESS which doesn't specialise in payment plans, I have had to pay a minimum each month but they showed this as being missed payments and issued a 'default' - hate that word! :cool:

So.... With this on my case, I have been told that I cannot simply move my mortgage across, I would need to apply again! I would be able to commit 10% deposit etc but dread the process. We have always maintained our mortgage payments.

Surely if they declined the new mortgage application, they cannot issue the 'get out' penalty which stands at £3,500!!!! - after all I am happy to stay with them!?

Please help!

A desperate newbie!

Dan_Collins_2

Firstly I am sorry to hear of your loss.

Lenders will always re underwrite a mortgage on a new property and the contract states this when you sign up to it. If you are borrowing the same and the equity is good then you may be ok but from their point of view I doubt they would lend more. If they decline you and you move lenders you will have to pay the penalty. Sorry that all sounds harsh, but it is how it is.

You may be better off going in to see somebody face to face so you can express your position clearer. When I worked for a building society many moons ago, I managed to get allsorts through because I under stood the underwriting process and could use it to my advantage, a good advisor in a branch could do the same!

Good luck and I hope it works out well for you