Mortgage approved then declined HELP!
Discussion
Hi,
We had our mortgage with Halifax approved subject to valuation on 25/10/13. the Valuation was carried out last tuesday and everything was fine.
Halifax then asked for more information from us after this which was a letter from my partner stating when she will be going back to work from maternity leave and they asked for more info from my accountant like gross profit/net profit etc for the last couple of years.
We submitted all of this last thursday. Just had a phone call saying they will now only lend us X amount (which is £24,000 less than what we need).
So I am really stumped! I can't believe they can do this, they've had all the information they could possibly need, SA302s/accounts/payslips etc and now they changed their mind.
We have paid for the valuation to be done which should have been the last bit of the puzzle but obviously not. I could understand if they said this before but after they had approved subject to valuation? Surely they can't just do this?
We were aiming to complete at the end of November. This may sound a bit dramatic but I literally feel like my world has collapsed. I've already spent a couple of grand on items that are non refundable.
We had our mortgage with Halifax approved subject to valuation on 25/10/13. the Valuation was carried out last tuesday and everything was fine.
Halifax then asked for more information from us after this which was a letter from my partner stating when she will be going back to work from maternity leave and they asked for more info from my accountant like gross profit/net profit etc for the last couple of years.
We submitted all of this last thursday. Just had a phone call saying they will now only lend us X amount (which is £24,000 less than what we need).
So I am really stumped! I can't believe they can do this, they've had all the information they could possibly need, SA302s/accounts/payslips etc and now they changed their mind.
We have paid for the valuation to be done which should have been the last bit of the puzzle but obviously not. I could understand if they said this before but after they had approved subject to valuation? Surely they can't just do this?
We were aiming to complete at the end of November. This may sound a bit dramatic but I literally feel like my world has collapsed. I've already spent a couple of grand on items that are non refundable.
Mandat said:
What reason did they give for not lending the full amount?
Sorry, should have mentioned that. I've been trading as a LTD company since 2010 and at that time I was living with my parents so didn't need to really take any money so my income was about £7k so they have taken that and my last years income and got an average.
It seems ridiculous, why they have done that I can't understand. Surely it should be the last two years (which is what we thought was happening)
Sarnie - you're needed!rich12 said:
Hi,
We had our mortgage with Halifax approved subject to valuation on 25/10/13. the Valuation was carried out last tuesday and everything was fine.
Halifax then asked for more information from us after this which was a letter from my partner stating when she will be going back to work from maternity leave and they asked for more info from my accountant like gross profit/net profit etc for the last couple of years.
We submitted all of this last thursday. Just had a phone call saying they will now only lend us X amount (which is £24,000 less than what we need).
So I am really stumped! I can't believe they can do this, they've had all the information they could possibly need, SA302s/accounts/payslips etc and now they changed their mind.
We have paid for the valuation to be done which should have been the last bit of the puzzle but obviously not. I could understand if they said this before but after they had approved subject to valuation? Surely they can't just do this?
We were aiming to complete at the end of November. This may sound a bit dramatic but I literally feel like my world has collapsed. I've already spent a couple of grand on items that are non refundable.
Hi Rich,We had our mortgage with Halifax approved subject to valuation on 25/10/13. the Valuation was carried out last tuesday and everything was fine.
Halifax then asked for more information from us after this which was a letter from my partner stating when she will be going back to work from maternity leave and they asked for more info from my accountant like gross profit/net profit etc for the last couple of years.
We submitted all of this last thursday. Just had a phone call saying they will now only lend us X amount (which is £24,000 less than what we need).
So I am really stumped! I can't believe they can do this, they've had all the information they could possibly need, SA302s/accounts/payslips etc and now they changed their mind.
We have paid for the valuation to be done which should have been the last bit of the puzzle but obviously not. I could understand if they said this before but after they had approved subject to valuation? Surely they can't just do this?
We were aiming to complete at the end of November. This may sound a bit dramatic but I literally feel like my world has collapsed. I've already spent a couple of grand on items that are non refundable.
I'm a Mortgage Broker and can perhaps shed a bit of light on the reasoning for their decision and then perhaps help you source a new mortgage.
Piecing together the bits of info it sounds like you have submitted an application which has been approved and then sent your documentation in. They obviously feel that there is something within your documents that wasn't given previously and therefore have altered their stance eg did you tell them about the £7k 2010 earnings from the outset? Did you tell them your wife was on maternity leave from the outset or did you just give them her usual salary figures etc?
Has the valuation actually been carried out?
If the valuation has been carried out, depending on who did it, you may be able to copy a re-write, rather than paying for another. Failing that, we could try to source you a product with a free valuation so that you've not paid twice for it.
I can help you get this back on track asap if you want to drop me a PM/email?
Liam
This its the thing, they have had all of the information for a while. I sent them the SA302s right at the start and they knew she was on maternity leave.
I was told that they take the last 2 years of accounts and they also started with this but changed their mind and used my first years accounts and last years.
They didn't even take my net profit for my first year (which was a lot more than £7k).
They admitted they shouldn't have carried out the valuation and they said it was a technical error.
I was told that they take the last 2 years of accounts and they also started with this but changed their mind and used my first years accounts and last years.
They didn't even take my net profit for my first year (which was a lot more than £7k).
They admitted they shouldn't have carried out the valuation and they said it was a technical error.
rich12 said:
This its the thing, they have had all of the information for a while. I sent them the SA302s right at the start and they knew she was on maternity leave.
I was told that they take the last 2 years of accounts and they also started with this but changed their mind and used my first years accounts and last years.
They didn't even take my net profit for my first year (which was a lot more than £7k).
They admitted they shouldn't have carried out the valuation and they said it was a technical error.
Is the LTV high? Eg 85%+?I was told that they take the last 2 years of accounts and they also started with this but changed their mind and used my first years accounts and last years.
They didn't even take my net profit for my first year (which was a lot more than £7k).
They admitted they shouldn't have carried out the valuation and they said it was a technical error.
rich12 said:
90% LTV. I would accept it and move on but given how far along we are in the process and the fact they agreed in subject to valuation and then changed their minds...
You have two options;1) Argue the toss with them which could be a very long and drawn out process and ultimately may leave you out of pocket with no mortgage and no new house. I can't foresee a situation whereby they make a decision to lower the borrowing amount and then reverse it back, hopefully for your sake I'm wrong.
2) Go elsewhere to get what you want, which ultimately is the house. Also, at 90% LTV there are other lenders with lower rates!
rich12 said:
Apparently he has a good relationship with the national manager of Halifax and will be speaking to him tomorrow about it.
Sounds iffy to me.....there are plenty of lenders out there with better rates than Halifax at 90% which makes my (cynical) mind ask the question as to why he put the mortgage with Halifax.Halifax do have some quirky criteria to be fair, so that may be the reason, it's hard to tell without having all the information.
rich12 said:
This its the thing, they have had all of the information for a while.
They admitted they shouldn't have carried out the valuation and they said it was a technical error.
I trust they have waived that fee.They admitted they shouldn't have carried out the valuation and they said it was a technical error.
My daughter once had a similar issue, not with earnings but with the type of property she was buying.
Quite a way down the line with the purchase, the lender announced that they didn't lend on that kind of property ( they knew from the start what kind of property it was
).They refunded ALL her costs including the independent structural survey she had already carried out.
Does anybody happen to know if you can port a first buy scheme mortgage to a 'normal' house?
We were told no by natwest (hence why we looked around) but I am no being told that we can.
They have said the current outstanding balance will stay at the same rate and any additional borrowing will be on a new rate.
Is this correct?
We were told no by natwest (hence why we looked around) but I am no being told that we can.
They have said the current outstanding balance will stay at the same rate and any additional borrowing will be on a new rate.
Is this correct?
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