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halifax mortgage query

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  • halifax mortgage query

    Hi. I'm looking for some advice on what the chances are of our daughter and her partner getting a mortgage.

    Our daughter is a teacher who worked supply for a while when she finished uni, this meant she often only had a few days work a month and because of this hadnt cleared her student overdraft of £2500. She got a maternity cover contract in September 2012 up until july 2013 and was going to use the tax she was due from 2011/12 to clear the overdraft. The school mesed up her p45 and she ended up on basic rate for ages and she ended up having to contact hmrc herself to get her code sorted and get back the owed tax.

    She paid off the overdraft a couple of months ago and was also offered a permanent position at the school she so thought about buying a home and we her parents offered them a 10% deposit so they didnt have to wait to buy.

    Her patner is the dreaded self employed. Two years accounts only, so they went to ask and were given a mortgage in principal by halifax but said he would need a projection for next year. They found a house and have put an offer in. Halifax submitted their application to the underwriters, its came back 12 days later with them now wanting three months bank statements and his p60 from when he was last employed, to prove his employability.

    My daughter is concerned her bank account wont look healthy enough due to overdraft and the fact she was spending money on things for a new house. What are the underwtiters likely to do? They are worried the seller wont wait much longer for them to sort it.

    We are in a position to guarantee for them, being mortgage free ourselves but dont want to if we can avoid it, nor do we really know if that would mean we would always have to stay as a guarantor for the full 25 years.

    Any advice would be welcome.
    Thanks

  • #2
    Re: halifax mortgage query

    Good morning,

    The bank overdraft is not an issue - so long as it was within the agreed limit - and even if it wasn't then it's not usually an issue.

    The self employed for 2 years is also fine - there are lenders out their who will accept 2 years self employed income, either using SA302s, accounts or even an accountant's letter - it really is no bog deal. There is certainly no need to go back pre self employment and start digging up p60s.

    I cannot see an issue with this case.

    Comment


    • #3
      Re: halifax mortgage query

      Thank you for the reply Sean. I have no idea why they want a p60 from two years ago either, but they are having to submit it tomorrow with the bank statements. its all very frustrating and worrying for them. Dont know why they couldn't have asked for these at the time they applied, plus despite us living in a large town. Halifax only have one mortgage adviser and she is now off work for a couple of days!

      if they do get turned down, do you know what guaranteeing the mortgage means in practical terms for us. Can they have us taken off the mortgage in a couple of years time when they look to remortgage the fixed term, or will it mean we have to stay on for 25 years?

      Comment


      • #4
        Re: halifax mortgage query

        In my opinion there is no need for you to act as guarantor - guarantors are there to provide additional income which is not required in this case; supplying a gifted deposit is another issue which is perfectly allowed.

        This case should have been approved in a matter of hours - as far as I can see there are no issues - I presume there are no credit score issues? That may have lead the bank to make further enquiries post application.

        Comment


        • #5
          Re: halifax mortgage query

          as far as I know sean, they both scrored excellent on the credit checks. I know my daughters score was 999 on the credit check she did.

          Comment


          • #6
            Re: halifax mortgage query

            It is very frustrating - keep a close eye on things; hopefully they will proceed.

            Comment


            • #7
              Re: halifax mortgage query

              Hi, just wanted to update everyone on my query.

              The last time I was here my daughter and her partner were waiting on a mortgage approval. Their application had already been under consideration for a quite a while when they told they also had to submit three months bank statements and her partner's P60 from two years ago. They managed to get all the information together and get it into the branch a day earlier than they thought they could (Wednesday at 10:00am)

              They were told it would take two to three days for a decision. They rang after two days to find out that only half the information had been put on the system, but were told the rest would be on the next day. They rang at the end of the next day to see if anything had been decided to be told it had been put on the system, but it would now not show on the system until Monday!!

              They texted the mortgage advisor throughout the day on Monday and got no reply. She rang them at 5:15pm to tell them nothing had come through, but then said it can take up to 48 hours after its been put on the system for it to be approved. So to call back tomorrow!

              They texted her all day Tuesday and got no reply! Once again she waited until after 5pm to call them and say it was still not on the system, but if it wasn't showing by 10:00 am the next day, she would get her manager to call the underwriters because she was not allowed to do it.

              Wednesday they called and texted the mortgage advisor at 10:30 to see what was happening, got no reply. Got a text back at 2:00pm to say she was having difficultly getting hold of her manager to get him to call the underwriters.

              At 3:00pm my daughter's partner called the branch and trying not to make things any worse, complained in as nice a way as possible that he was disappointed with the amount of time it was taking to get a reply from the underwriters. A 3:30pm he got a call from the advisor to say she had called the underwriters herself and that their application was approved and the reason it had taken this long was a fault on their system.

              So all in all good news, but more than a week of stress over it all!

              And in conclusion we were all left wondering why

              a) The information couldn't have just been faxed/scanned to the
              underwriters, rather than manually being put on the system?

              b) If indeed the system really was faulty, why the underwriters didn't call the branches to let them know about it?

              and

              c)If the advisor managed to call the underwriter without her managers permission, why didn't she do so sooner?

              Thank you for all your advice
              Regards Pappy

              Comment


              • #8
                Halifax Mortgages 2013

                I've come across this situation time and time again.

                Contrary to popular belief underwriting a mortgage is not an exact science to be played to exact time scales.

                The banks are very busy and like all of us make mistakes.

                The public need to understand this.

                Comment


                • #9
                  Re: halifax mortgage query

                  well an update to add!

                  My daughter and her partner got the offer of the mortgage today in writing from the underwriter and at 5.07pm the mortgage advisor rang and told them that as my daughter's partner had his birthday two days ago, the term of the mortgage has changed and they will have to pay £20 a month more and not only that but the whole thing has to go back to the underwriter for consideration!!!

                  This isn't just a mistake, this is incompetence. His upcoming birthday was mentioned weeks ago and she was supposed to change his retirement age. She now says the system wont allow her to do it and she will have to reapply.

                  Comment


                  • #10
                    Re: halifax mortgage query

                    Sometimes a case may drag on longer than expected so that the clients birthday takes place which can mean that their term will take them over their stated retirement age.

                    This is easily rectified by either:
                    - reducing the term by 1 year so that the term is still online to complete within the clients stated retirement age
                    - or increase the stated retirement age by 1 year, which will be allowed so long as this does not beach the lender's maximum allowed retirement age; this is 70 with the Halifax.

                    The first option above is usually the one taken.

                    Once the term has been reduced by 1 year, and assuming all other aspects have been underwritten then the case should proceed - there should be no need to reapply.

                    Comment


                    • #11
                      Halifax Mortgages 2013

                      Sometimes a case may drag on longer than expected so that the clients birthday takes place which can mean that their term will take them over their stated retirement age.

                      This is easily rectified by either:
                      - reducing the term by 1 year so that the term is still online to complete within the clients stated retirement age
                      - or increase the stated retirement age by 1 year, which will be allowed so long as this does not beach the lender's maximum allowed retirement age; this is 70 with the Halifax.

                      The first option above is usually the one taken.

                      Once the term has been reduced by 1 year, and assuming all other aspects have been underwritten then the case should proceed - there should be no need to reapply.

                      Comment


                      • #12
                        Re: halifax mortgage query

                        Well the offer from the underwriter says they assume it will start on the 16th July and it is for 38 years. The stated retirement age was put down as 66, he was 27 two days ago and the term was for 38 years. So July 2051 he will be 65 and one month
                        Last edited by pappy; 19-06-2013, 06:23 PM.

                        Comment


                        • #13
                          Re: halifax mortgage query

                          I assume she is taking it back to the underwriter to assess whether they can afford the extra £20 a month they are going to have to pay.

                          Comment


                          • #14
                            Re: halifax mortgage query

                            The reduced term will reduce how much they can afford to borrow - if so one of your options maybe to extend to the term and increase the retirement age. However all may be ok without the need to do anything.

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