Awaiting Halifax mortage decision- Will it fail for credit balance? Advice please?

Gem_M90

Awaiting mortgage decision from Halifax and absolutely terrified. First time buyer, can't get a mortgage with my partner as his credit history is horrendous (multiple defaults caused by ex partner) so I've had to do the whole application in my own name. Purchasing a new builld (hopefully) and using the Help to Buy scheme in Scotland where the government lend 15% of the property value (15% being just under £30k in this case). Also putting down a 30k deposit and taking out a mortgage for the remaining £133k. Got my agreement in principle no problem from Halifax through a broker. I've actually used 2 brokers, 1st one I had a great relationship with however he didnt deal with help to buy so recommended I use the home builder's appointed broker for a smoother journey. I do have some credit but a very good credit score, never a missed payment etc. All in I have about £5500 credit across a credit card and 2 store cards (Credit limit is £16k across all, so around 33% utilisation) and £3400 of a loan which I've never missed a payment on (ends August 2022). My mortgage broker submitted my application on 13th August and it was referred to underwriters a week later. Got an update today saying there had been discrepancies with credit declared so ive had to send my broker copies of credit report and credit statements. My credit report hasn't updated yet since previous payments so its showing about £3500 more debt that I've now paid, hopefully thats all the problem is? I feel so sick constantly! Anyone experience of similar? 

JonothanBurford

I honestly wouldn't worry about it.  Those credit reference agencies I've noticed can take several months to update.  I've one credit card that was cleared back in May and it is still showing on Experian has have a balance of £600 on it.  As long as your credit card statements back up what you've submitted, there shouldn't be a problem.  Look at it this way, if that's the only thing they've pulled up, that should be a good thing!

Gem_M90

JonothanBurford said:

I honestly wouldn't worry about it.  Those credit reference agencies I've noticed can take several months to update.  I've one credit card that was cleared back in May and it is still showing on Experian has have a balance of £600 on it.  As long as your credit card statements back up what you've submitted, there shouldn't be a problem.  Look at it this way, if that's the only thing they've pulled up, that should be a good thing!

Yeah that's what I'm trying to tell myself. I think I'm just worried because even though there's 2 of us with 2 incomes, because of my partner's credit history it can only be based on mine. The mortgage will actually be £50 less/month than we pay on rent for our 2 bedroom flat so it will be so frustrating if it doesn't go through! Using a broker though so I'm sure they'll make it happen. 

Gem_M90

Interested to hear if anyone has been in a similar position. And if they were going to reject me would it have been a straight up "no"?

[Deleted User]

Everyone's circumstances are unique, so not much point in worrying about what may or may not have happened to others.

You've not yet been rejected so just keep moving forward.

katiescotland88

Hi Gem. When we got our first mortgage- both my husband and I had debt. It wasn't an issue with us and we went with the Halifax 😀 we had more debt than you on credit cards. Good luck. Hope it is approved for you. Keep us updated.

Gem_M90

katiescotland88 said:

Hi Gem. When we got our first mortgage- both my husband and I had debt. It wasn't an issue with us and we went with the Halifax 😀 we had more debt than you on credit cards. Good luck. Hope it is approved for you. Keep us updated.

Thank you so much, that's very reassuring. Although I know every case is unique but still good to hear of someone who's been in a similar place. Just apprehensive about it all having to go through in my name even though we have 2 incomes. Also I had a good relationship with my previous broker as I've been house hunting for a year now so I guess I felt more reassured than stepping back into the unknown with a new one. 
Does anyone know if Halifax do reject it, will my broker look to find another deal straight away? Also worried with the time it's taking and I doubt they'll hold the reservation on the new build waiting on another decision. 

adrian84

You will be fine no problem. Check your creditscore they already did an affordability search on you and you didn.t fail. It is more for audit purposes in my opinion as they need to have everything matching. For me they asked p60 because on payslip could.t see the employers name and address. 

You can use their affordability calculator just google it and key in all your numbers and see how much they can lend. I had debt also and was fine, i usually use those calculator to see hoe much impact has the balance on cards is a personal loan  on the maximum amaount that they would lend.
Even if they will use the old amount that it shows you owe they will not fail you for this, instead they reduce the amaount that they csn lend you.