DIP declined from current lender (requesting 15%) not sure why

poohjj

My mortgage DIP from Halifax ( My current provider ) was not necessary declined however they are requesting a 15% deposit when I only have 10%. Im not sure why this has happened?  I have no late payments, no defaults, no CCJ's.

I look at my credit file and the only thing I can assume possible is my credit cards. I normally just spend whatever on them and pay it back every month. I've never not cleared my balance on the credit card. So it may show high utilisation but I always paid off the balance in full. When I done the DIP i checked my file and it said my CC balance was £889 (out of £1000) which was paid off every month.

Apart from that Im confused as to why this has happened.

The house price is £400,000
Im offering 10% deposit - £40,000
My salary is £127,000 which is way above the affordability.

So I dont know what it is..

Would appreciate any help

K_S

poohjj said:

My mortgage DIP from Halifax ( My current provider ) was not necessary declined however they are requesting a 15% deposit when I only have 10%. Im not sure why this has happened?  I have no late payments, no defaults, no CCJ's.

I look at my credit file and the only thing I can assume possible is my credit cards. I normally just spend whatever on them and pay it back every month. I've never not cleared my balance on the credit card. So it may show high utilisation but I always paid off the balance in full. When I done the DIP i checked my file and it said my CC balance was £889 (out of £1000) which was paid off every month.

Apart from that Im confused as to why this has happened.

The house price is £400,000
Im offering 10% deposit - £40,000
My salary is £127,000 which is way above the affordability.

So I dont know what it is..

Would appreciate any help

@poohjj At those levels of income and borrowing, a £1,000 credit card balance is very unlikely to cause a DIP outcome to be capped at 85% LTV.

Do you have any other mortgages in the background?

As a first step, if you haven't already, get a copy of your Experian credit report and pore over it to see if there's anything on there that might explain this - any adverse markers, address discrepancies, etc.

Because you mention 'current provider', are you trying to port?

If you still can't figure it out, it may be worth getting in touch with a broker.

poohjj

K_S said:

poohjj said:

My mortgage DIP from Halifax ( My current provider ) was not necessary declined however they are requesting a 15% deposit when I only have 10%. Im not sure why this has happened?  I have no late payments, no defaults, no CCJ's.

I look at my credit file and the only thing I can assume possible is my credit cards. I normally just spend whatever on them and pay it back every month. I've never not cleared my balance on the credit card. So it may show high utilisation but I always paid off the balance in full. When I done the DIP i checked my file and it said my CC balance was £889 (out of £1000) which was paid off every month.

Apart from that Im confused as to why this has happened.

The house price is £400,000
Im offering 10% deposit - £40,000
My salary is £127,000 which is way above the affordability.

So I dont know what it is..

Would appreciate any help

@poohjj At those levels of income and borrowing, a £1,000 credit card balance is very unlikely to cause a DIP outcome to be capped at 85% LTV.

Do you have any other mortgages in the background?

As a first step, if you haven't already, get a copy of your Experian credit report and pore over it to see if there's anything on there that might explain this - any adverse markers, address discrepancies, etc.

Because you mention 'current provider', are you trying to port?

If you still can't figure it out, it may be worth getting in touch with a broker.

Hello @K_S

No just one mortgage with Halifax on my current property.

I have my Experian credit report and theres nothing alarming there. No late payments, No defaults and CCJ's so really confused.

Yes im trying to port.

I think im going to contact a broker.

I've read some other threads on this where there DIP was declined and they applied somewhere else and got accepted so may keep that as an option.

kingstreet

Length of address history.

Length of employment history.

Lack of credit/abundance of credit.

Phone numbers entered.

Instead of 90% try 1% increments from 85% upwards - 86%, 87% 88%,89%.

If joint, reverse the applicant order - one become two and vice versa.

These are all the Halifax little issues and the quirks we can try.

poohjj

kingstreet said:

Length of address history.

Length of employment history.

Lack of credit/abundance of credit.

Phone numbers entered.

Instead of 90% try 1% increments from 85% upwards - 86%, 87% 88%,89%.

If joint, reverse the applicant order - one become two and vice versa.

These are all the Halifax little issues and the quirks we can try.

Hello 

My length of address history is small i moved her in december but i mean its with my mortgage with halifax so....

I've worked at my job since january 2022

And really I didnt know you could have increments of 1%. I thought it increments of 5% 

How would this work? Would i need to do a new DIP for each 1% increment please let me know.

kingstreet

So you have two weak features - time at work and time at address. I suspect that is enough to cause you to be considered too risky for 90%. If you weren't an existing borrower, it may have been 80% or lower.

The other things are what brokers can do. I have no knowledge of the direct proposition.

kingstreet

FYI I had a DIP decline at 90% that passed at 89.9%. You simply change the mortgage amount in the broker system which is editable.