Halifax mortgage and bank statement request HELP!!

chris198

Hi everyone im looking for some advice, I have an offer on a house for £400k with a 5% deposit. combined joint incomes of over £6.5k per month, majority of debts will be paid off prior to making the application leaving just s small loan and car finance of £20k on pcp. After doing expenditure form we will have surplus of around £3k each month to save. 
Although our affordability is great during April I used my debit card to place a good load of bets for the Cheltenham festival and the grand national week. I have a decent amount of savings in my current account and with my salary my income was always about 3k better than my expenditure even after all my bills came out. This proves that my betting patterns are controlled and not at the detriment of my bills or having to rely on my active credit. 
Do you think that Halifax will request our bank statements because of the amount of loan and LTV and if so do you think my gambling fun during April will hinder our chances?
im highly anxious at the minute !!

ACG

Do you bank with halifax? If so, they will have access to all of your statements. 
If not, they may ask for them. If they do and it is a problem, just explain what you have on here. I think you will be fine. 

chris198

No we both bank with HSBC. I had read from various sources that Halifax don't bother asking for them hence why I was asking about them, Our broker has yet to get back to me about the most suitable lender, I was anticipating just asking them to apply for Halifax based on reviews of other who havent been asked for statements. 

LRmortgage

I think you’re over thinking it. 

Assuming your broker has seen your bank statements, point out the gambling to them to be sure and then let them make a recommendation to you. 

If it’s just for one month and isn’t major amounts of money it shouldn’t be an issue for the vast majority of lenders. 

ACG

I think at 95% LTV there is a good chance statements will be requested, but as the 95% LTV mortgages are new I am not sure whether lenders are asking for them on all cases or not. Best to assume they will. 

TheLastMinute

Just applied for a 95% LTV with Halifax. In my case, they wanted to see bank statements as my payslips didn't have my employers name on them. I assume they just wanted to see the name against the credit. 

chris198

Had a decision come back that they rejected the 95% for a mortgage of £423k but would accept us at 90%? i really don't understand, I thought the government Guarantee was their to ensure situations like this got over the line. I have asked the Broker to go back to them with all the proof that my unsecured loan and CC debt has been paid off. Literally just cleared 10k of debt. hoping they will change their minds. 

jazzyja

chris198 said:

Had a decision come back that they rejected the 95% for a mortgage of £423k but would accept us at 90%? i really don't understand, I thought the government Guarantee was their to ensure situations like this got over the line. I have asked the Broker to go back to them with all the proof that my unsecured loan and CC debt has been paid off. Literally just cleared 10k of debt. hoping they will change their minds. 

I was under the impression the government guarantee was for those who couldn't afford 10% deposit. My broker said they're still very very strict at 5% and you'd need a clean as a whistle everything pretty much 

mjane93

chris198 said:

Had a decision come back that they rejected the 95% for a mortgage of £423k but would accept us at 90%? i really don't understand, I thought the government Guarantee was their to ensure situations like this got over the line. I have asked the Broker to go back to them with all the proof that my unsecured loan and CC debt has been paid off. Literally just cleared 10k of debt. hoping they will change their minds. 

We were declined a 95% mortgage of £152k due to issues with my OH not showing in the electoral roll (I’m also not on it as I’m a foreign national). Our credit is squeaky clean with no missed payments/ debt. We were told if we waited a few months it may go through but we didn’t want to lose the house we had an offer accepted on so decided to go with a 90% mortgage that was accepted - all we needed to provide April payslip and our mortgage offer was accepted in just under a week. 

Windofchange

When we went through all this start of 2020, Halifax wanted 3 months of bank statements. We got a large figure at 90%, and also got accepted at 95% for the amount we needed, but at a higher interest rate of course. Both our files were squeaky clean with no debts, gambling etc etc, so I don't think that stipulation has changed in terms of having to show yourself in the best possible light to the underwriter. I have however heard that the 95% bracket however well underwritten by UK Gov is even more strictly looked at as I think you have found out. The line of work you are in will also play a part in the decision I'm sure - if it is retail, leisure etc then the banks are likely to look a bit more closely than something like NHS, police etc where you job is way more secure. None of this really helps you I guess, but paying down debts isn't a bad thing anyway for when you come to apply again. 

[Deleted User]

chris198 said:

Had a decision come back that they rejected the 95% for a mortgage of £423k but would accept us at 90%? i really don't understand, I thought the government Guarantee was their to ensure situations like this got over the line. I have asked the Broker to go back to them with all the proof that my unsecured loan and CC debt has been paid off. Literally just cleared 10k of debt. hoping they will change their minds. 

At 90 and 90% Halifax will go on whats on the credit report rather than what is to be cleared prior to completion..  Under 90% they will allow you to declare debts being repaid and then disregard them.

Halifax credit scoring is super intense at 95%.  Any particular reason the broker went with them?