Halifax AIP- worried about full mortgage application!

Murphh15

Hello all,


My first post!


Basically me & my girlfriend buying a house with the HTB scheme. The house is £184,950- putting 5% (around £9500) down with the 20% government loan, so after a mortgage for £138,710 on a new build.


Brief background: I earn £45,000 & my girlfriend earns £20,000. She has a good credit rating, mine isn't great. I have a default from May 2015 from an old phone bill (£63). I only found out about it in October 2018 when I started looking into my score, and its now settled in full. I also have used pay day loans, several times between 2015 to Feb 2016. (i know- stupid!!!) I never missed a payment with them but understand what a devestating effect they can have. I have missed payments several times, the last one being December 2017 on an old Halifax account I wasn't using. I have a car loan with £5,000ish left (243 a month, no payments missed) but other than that no debt. My girlfriend has a student loan and a student overdraft currently at around £700ish that she pays between £20-50 per month off. We have around £13k (& rising because we're saving around £1,200 per month between us- house set to be built June 2019 time). The other issue is I started a new job mid-december 2018 so although I have 3 payslips, one of them is half the pay effectively as they pro-rata'd my pay for the first month.


Now, we have an agreement in principle with the Halifax. Our broker is submitting our application now with the Halifax. I am worried as I was told in the past with my credit faux pas we would struggle with a high street lender. My broker is assuring me we'll be fine, he is confident so we've gone ahead & are applying for a 5-year fixed 2% mortgage. I'm not gonna lie, I am bricking it that we won't get accepted.


Does anyone have any idea of applying with the Halifax before? Struggling to find their lending criteria etc.


Can anyone put me at ease? Or am I living in a dream world with no chance at all?!


Thanks in advance!

Jack_Cross

Why did he chose Halifax!
Halifax do not accept payday loans if you have had one at all in last 6 years (basically if it is showing on your credit report)
You can confirm this yourself by ringing Halifax mortgages and asking for their policy on payday loans.

I had same issue as you, payday loan use last used Jan 2017, so I rang up almost every bank one after another. Most didn't have specific policies and stated a generic it depends on your overall picture, but Halifax was a clear, no if in 6 years. Other automatic nos were: Virgin Money, Post Office, Barclays.

Make sure Broker does research as its not worth the hard search!

amy2015

Hi, I hope I can try and put you at ease...


I applied with Halifax in October and we moved in Dec 18!


I had defaults on my credit file as recent as Feb 16 and they never even questioned it. (Mine were phone bills) and I have previously had payday loans 2015 and prior.


I also had a 10k car loan outstanding.


I can't comment on the late payments or starting the new job.


Let me know if you have any questions on the process etc. I remember it was something I used to search for all the time.


Amy

Murphh15

"Why did he chose Halifax!
Halifax do not accept payday loans if you have had one at all in last 6 years (basically if it is showing on your credit report)
You can confirm this yourself by ringing Halifax mortgages and asking for their policy on payday loans."


I am worried, not going to lie, I spent nearly an hour with him the other day repeatedly asking if he was sure that I would be accepted- he said he only gets paid if he gets a mortgage and he wouldn't apply for one if he wasn't.


He stated 3 years, but even if that mine is running it close isn't it.


Thanks for your response- I will speak to him about it.

@amy2015 - thank you (i must prefer your response haha) joking aside, do you know what month in 2015 your payday loan was?


Many thanks

Verix

I'm also under the impression that Halifax don't like to see payday loans on your credit file at all

amy2015

There was one for Feb 15 and Nov 15. My broker said along as you declare everything you will be fine. I am sure there was a section about asking if I had ever had any adverse credit. I was expecting them to ask me for reasons why I had them but they didn't ask anything. I didn't sleep for ages whilst waiting for the response, the suspense was torture!


Although we didn't use HTB in the end as our sale fell through a few weeks before completion, but we did put just over 10% down but our mortgage was for £360k and our combined income is only a little bit more than your income combined.


Amy

amy2015

I should add that Feb 15 and Nov 15 were the months they were paid and closed.. not sure if that makes a difference!

Murphh15

Double checking mine, its was settled Jan 2016- he's still saying three years is what he believes the criteria to be.


I don't know. I'll be so mad with him if we get turned down! figures crossed

amy2015

I will keep my fingers crossed for you. Our mortgage application was 5th October so it was only a month away from 3year mark. Keep us posted on what they say, they didn't take long at all to get the mortgage offer out once the valuation was done, the whole process seemed very fast and smooth

martty

Hello all,

Little worried about being declined for a mortgage after been accepted for an AIP. 

Just been approved for an AIP with Halifax for £187,000, so put an offer in on a house, home report value £225,000 but offered £235,000 as I loved the house. Im looking to borrow the full amount that I've been accepted for as I'm using all my savings for the deposit. 

I earn £45,000 and I only have 1 loan that I pay £291 a month and I have just over £9000 left on the loan, I also have an excellent credit rating with no missed payment or defaults on my file. 

The question I'm asking is can Halifax lower the amount that they have accepted me for or refuse me completely after approving my AIP? 

Thanks. 

Bryony84

Hi, you should probably have started a new thread for this question @martty but yes, they can lower the amount at the offer stage. We have just had this happen with Natwest offering 20k less than AIP amount (this is after paying for a survey!)