Halifax - 'pre-agreement check'

Desperate_Dan_3

Any ideas how generous Halifax are feeling at the moment?

We currenty have a mortgage advisor looking into re-mortgaging our shared-ownership home. We currently own 47% of the house and paid £118,500 for it 3 years ago. We were given a £30,000 deposit by girlfriend's parents, so got a mortgage from Abbey for £88,500

We have unfortunately managed to get into £25,000 worth of debt and are looking at releasing equity in the house to pay off these debts. Therefore we will be looking at taking a new mortgage of £110,000.

After looking at our situation our mortgage advisor was worried that in August, September and November we missed payments on the credit card, but paid the money owed soon after. Therefore he has submitted a 'pre-agreement check', to see if Halifax are likely to offer a mortgage to us. This decision was deferred on Friday, so a Human-being could make a decision. They are due to give us their answer tomorrow.

Any ideas what the outcome may be?

vanilla8

Sorry i cannot offer any direct advice, but we are currently waiting for our mortgage offer from halifax, we have just had the valuation survey(&hombuyers) done on the house we want. Halifax have rang our mortgage advisor today regarding bill payments we have had out of our accounts today, wanting explanations for them!
Seems like they do thoroughly check before lending.

Dan_Collins_2

They will see from your credit file that you have missed payments. If you paid them late you may be ok, if you were 3 months behind then you may be out of luck, shared owner ship is still seen as high risk, although the equity in your share will help. We can only guess at the out come though as Halifax are a good lender and will make a fair judgment. Your broker can also talk to the BDM and put your case across.

Good luck and I wouild not worry about it until your broker calls!

Desperate_Dan_3

Yes, I think this could be our downfall. These past few missed payments could really scupper our chances. If they looked at it from another prospective, that we have always made all other payments on time and have managed with a mortgage AND large debt repayments, totally £780 a month!!!

Sure I understand they want assurances over getting their money back, but we surely can't be the worst prospect?

Desperate_Dan_3

Dan, yes the payments were late but always paid up. We were only a month behind at any one time. Thanks for the advice, yes I agree I should just wait to hear from our Advisor.

I will advise of the outcome tomorrow, incase anybody else is interested!

Dan_Collins_2

You may find that the payments had not been shown, most credit card companies only show missed payments after 31 days of it being missed!

Let us know!

Desperate_Dan_3

Have just got off the phone from our mortgage advisor. Halifax have agreed to the 'pre-agreement check'. They are happy with our credit situations, despite the recent blip. They have interestingly offered an amount of £204,000!!! But we only require £110,000. Apparentely they only defered the decision to ask about our ownership share %, not at all concerned with our outstanding debts.

Next stage is to complete the mortgage application with advisor tomorrow and wait for the definate answer. All signs look really positive at the moment!!! Very happy, so far!

Dan_Collins_2

They always give a max loan, I like that about Halifax.

Good luck matey

Desperate_Dan_3

Thanks for your advice and wishes Dan. Will keep this thread upto date for others info!

Desperate_Dan_3

A quick update on this one. Received a call from our Mortgage Advisor, the valuation on the property has been done and they have valued it at £99,000!!! Considering we paid £118,750 three years ago our mortgage advisor queried it. It turns out an apprentice did this valuation on his own as a 'drive-by'. The apprentices senior is back in the office tomorrow and will into this, and hopefully arrange a re-valuation.

I have checked all the free proprty valuation websites and they claim that the property is worth between £135,500 and £150,000. That is for our 47% share in it.

Anybody with any idea of house prices in Reading can appreciate that there is no way a 3 bed semi is worth just under £200,000. You'd be hard pushed to find a 2 bed flat for that!!!


Just a waiting game now over the weekend to see the outcome of the review. Any opinions people?

Dan_Collins_2

If you are unsure you can check on www.rightmove.co.uk under house prices. Not sure how it would work with share, it may show complete valuation.

I am finding valuations are coming up with some strange info at the mo!