Halifax Mortgage offer approved but 6 month rule?

HarryLime44

Hi there,

I’m a first time buyer, we had an offer accepted, then survey and mortgage offer through from Halifax recently. All good so far.

However in my solicitors initial enquiries, we noticed the vendor has only just purchased the property in May (3 months ago) and we will have to notify our lender of this because of the 6 month rule.

It appears the vendor purchased the building containing three flats and is currently selling them off individually. He is a developer/flipper of some kind. Our EA never thought to mention this, nor the short ownership. 

Our fear is that Halifax will now withdraw the mortgage offer once notified. Our broker reckons they’ll let us keep the offer and just tell us to wait until he’s owned it for 6 months before completing, but can’t be sure. Our solicitor reckons conveyancing will take another 3 months anyway so that would work.

Does anyone have experience with this? Is it likely Halifax will pull the offer once notified it has been owned for less than 6 months?

My broker said another option, if they do pull the offer, is to just reapply for the mortgage in 3 months as soon as it reaches the 6 month mark. Halifax have been super quick at approving us so she reckons it wouldn’t be too much longer.

Thanks!

HarryLime44

It should be noted I am bound to Halifax because of my wife’s visa status. So switching lenders isn’t an option for us.

JMA74

In the past Halifax policy was that the property had to be owned 6 months at date of application.
However, I wouldn't be surprised if they passed it back to the solicitor and just said that the policy is 6 months and to ensure it doesn't complete before then. 

Even if they do pull the offer I wouldn't panic. It will reoffer almost immediately since its already done so once.  And rates are dropping so you may end up better off