Halifax AIP

aimeeeve

Hi all,

Me and my boyfriend are preparing to buy our first property, he has a CCJ that is due to fall off his credit file on 20th August so we would be looking to apply early September.

We did an AIP with Halifax yesterday and got accepted which we were really chuffed about, however I have now realised I might not have put in his salary correctly and I'm worried this will change the amount they will lend us! We're going to view a property on Tuesday and would need the £350,000 to be able to afford it.

The AIP is for £350,000 mortgage with £40,000 deposit, however my boyfriend's earnings is split between his basic salary and overtime. His earnings for last year were £50,000 and he is on track to earn at least that this year. I stupidly put £50,000 in the basic salary section instead of splitting £37,000 and £13,000.

Does anyone know if this is going to mess up the AIP? I have contacted the mortgage broker that we are planning to use, however typically he is now on holiday until 12th August!

Thanks!

amnblog

It will possibly affect affordability but we cannot tell without knowing you income and the current outgoings.

The Lender does not factor in the full value of the variable income.

aimeeeve

Thanks for the reply.

My salary is £25,000 a year and we currently pay £200 a month each for our car lease.

Our credit cards will be cleared at the end of this month (£2000 total) and we have no other lending just phone bills, car insurance etc.

Xyzzy

Halifax uses 60% of the value of variable income. You’ll only know for sure by having the AIP amended however I’d expect affordability to drop by around £24,700.
Any mortgage advisor can change your AIP for you. They may try to pass you back to your original mortgage advisor but be polite but persistent and ask the person who answers the phone to find another’s mortgage advisor for you.
They’re open today

amnblog

You are clear for affordability based on what you outline here Aimee.

You max out at £331,550

Xyzzy

If your credit cards will be repaid before you complete on the house and you won’t continue to use them make sure the mortgage advisor knows that. They can deduct this from the affordability calculation

Xyzzy

Ignore AMN blog, he’s just done a basic income multiple. That’s not accurate at all. Your £200 per month car lease will reduce it to around £319,675. You haven’t mentioned whether you’ll carry forward any other debt? Or whether you have children? Or there will be ground tent or a service charge?

aimeeeve

amnblog wrote: »

You are clear for affordability based on what you outline here Aimee.

You max out at £331,550

Do you know if this would be roughly the same for all lenders?

Very frustrating as we can easily afford the mortgage payments!

aimeeeve

Xyzzy wrote: »

Ignore AMN blog, he’s just done a basic income multiple. That’s not accurate at all. Your £200 per month car lease will reduce it to around £319,675. You haven’t mentioned whether you’ll carry forward any other debt? Or whether you have children? Or there will be ground tent or a service charge?

We have no other debt, no children and would be purchasing a freehold house so no other charges.

We included the £400 a month for our car in the AIP so I assumed they had already taken this into consideration?

Xyzzy

Well it will have been taken into account by Halifax but we know that AIP is I correct as you’ve given the wrong income. I expect based on those circumstances you’ll be offered around £308750

aimeeeve

Xyzzy wrote: »

Well it will have been taken into account by Halifax but we know that AIP is I correct as you’ve given the wrong income. I expect based on those circumstances you’ll be offered around £308750

Wow that's a massive decrease from £350,000. I guess the house is completely unattainable for us then.

Thanks for taking the time to reply.