Halifax mortgage submission

chris198

Hi All looking for advice, we have applied for a joint mortgage for 95% with Halifax. AIP shown no issues and would borrow up to £500,000 on our income and affordability. we have a combine income of £103k and my partner has no credit balances other than a £4k credit card with a zero balance and a dfs retail finance for £1k. On submission i declared £20k of pcp finance for my car and £19k of unsecured debt that was also declared on AIP and did not affect the affordability decision in principle. While i know that is only a soft search i informed my broker that i had cleared £10k of the £19k with all my credit cards having a zero balance now just leaving a personal loan of £6k outstanding with an additional £2k on Barclays retail finance for my hifi system. 

When we submitted we supplied all evidence of the debts I had being fully paid off as my credit report wouldn't have been updated in time. We are requesting to borrow £401850 which gives us a deposit of £21150 5% but unfortunately Halifax didn't fully decline the application but came back with only a 90% acceptance of which isnt feasible for us as we have had our offer on the house accepted but would need at least another 4 months to save up the other 5%. 

A, we have appealed and Halifax have come back asking for other proofs such as proof of deposit - but still haven' gave us a straight out no, our mortgage broker as said she had received an email stating 90% but no answer to the appeal so is going to ring them tomorrow .  How likely is Halifax going to change there mind - Broker said we may have to wait until my report has updated the changes but even though we have given proof of those balance being cleared by my creditors what difference is that going to make when the report is updated if they are still showing reluctance to offer us 95% now. 

Alternatively my broker has suggested applying for the govt mortgage guarantee scheme with Barclays but i had doubts due to additional credit checks and hearing that the lending criteria on the mortgage guarantee scheme is quite tough. our reports have no missed payments at all and no adverse info CCJs etc. Also i found out that my partner has just started living with me in my rented accommodation and although she received a electoral voters card that still hadn't shown on the credit file too, again we provided proof. 
Really stressed out now as i fear we are going to lose the house weve offered on as the vendors and their solicitors wont be happy that we haven secured an offer yet. and not sure how long we can prolong. could really do with some sound advice. 

K_S

@chris198 Did Halifax come back with 90% LTV at AIP or full application?

I don't know the details so can't comment on the chances of the Halifax appeal, but in principle your case doesn't look unplaceable at 95% with the right lender, unless you are restricted on term. With 95%, unfortunately a DIP is sometimes necessary to get an indication of whether the lender will consider or not.

What is you broker suggesting as a next step?

chris198

Hi thanks for your reply - they came back at 90% after full application. Hard searches have appeared on credit file.

K_S

@chris198 The AIP doesn't sound like it was keyed in correctly. Afaik, Halifax will only lend up to 4.5x at 95% LTV irrespective of high-income so I'm not sure how it returned 500k for you with 103k income.

chris198

I am only suggesting that as I had done some affordability checks with L and C  but didnt pursue them, went with a a independent broker, original AIP with LandC said we could borrow up to £500k.
My income that i provided was 60k base with 3 months proof of overtime at £1k a month and an annual bonus of 4k so put combine income up to £108k for Halifax would of been a total of 486k. sorry for the confusion.

Current broker has suggested that she didn't seem to be getting anywhere with Halifax, they are still saying 90% and i think we should try Barclay's.  govt scheme but not sure how lenient they are. But wait till next few weeks once credit report has updated. 
I asked if they had comeback with a definite no and she replied not a definite no just had an email saying 90% but nothing referring to the appeal. she is going to call them tomorrow.. 

K_S

@chris198 Hopefully your broker will get you sorted with the Halifax appeal or an alternate lender. You shouldn't necessarily *have* to wait till the report updates to try a DIP with a different lender if needed. Good luck!

chris198

Thanks for your inputs fingers crossed!! 

amnblog

chris198 said:

I am only suggesting that as I had done some affordability checks with L and C  but didnt pursue them, went with a a independent broker, original AIP with LandC said we could borrow up to £500k.

Say no more

chris198

Sorry what do you mean say no more? 

lonibra

I think amn means that an L&C AIP is pretty useless as all it does it multiply your income by X times and then says you may be able to borrow that much.