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Halifax mortgage in principle

(25 Posts)
Prinbeck Sat 01-Oct-16 13:47:49

Ive currently put an offer in on a house which has been accepted we have a mortgage in principle with Halifax and I've just sent all the paperwork through to start the full application I'm really worried as my partners bank statements don't look great he has a unpaid transaction free which was refunded as he wasn't at fault it was Vodafones but nether the less it's on his statement aswell as a transaction refund he also has a few William hill transactions on the statement I can't stop worrying about it as I'm scared it won't go through does anyone no anything about how this will impact the application??

thenewaveragebear1983 Sat 01-Oct-16 16:58:28

I'm not sure that they care what you spend your money on, just that you don't spend more than your means or have mysterious lump sums appearing in there. Provided you can afford the payments for your new mortgage, plus living expenses and insurances etc. I think they will accept that people can do what they like with their own money.
This is mn, so someone will probably tell me I'm wrong, but that is my experience

Prinbeck Sat 01-Oct-16 17:34:27

I hope that's the case lots of money been coming out but that's because I've been paying my credit card etc to get it off before we move just really worried about it sad

thenewaveragebear1983 Sat 01-Oct-16 17:58:09

Try not to worry. They might be concerned if you have lots of 'retail' spends and constantly overdrawn for example, but I can't imagine they will be bothered by you paying off your credit card. Tell dh to take cash out for any dubious purchases until they have approved your mortgage

Prinbeck Sat 01-Oct-16 18:39:01

I am in my overdraft but my financial adviser said this wasn't an issue I'm really confused I'm paying it off this month

thenewaveragebear1983 Sat 01-Oct-16 19:01:04

If it's an agreed overdraft then that's possibly why FA wasn't concerned. It's if you are over your agreed then they might worry. This is all speculation btw. We don't have overdrafts so it's not something that came up when we recently had a mortgage.

QuiteLikely5 Sat 01-Oct-16 19:04:11

Don't worry! They are looking at your wages coming in from your employer.

They aren't wanting to analyse your spending habits

Prinbeck Sun 02-Oct-16 00:15:40

So do they not analyse every penny you spend also do they check your credit card statements, as I have a Halifax credit card?? Thanks for the advice smile

thenewaveragebear1983 Sun 02-Oct-16 10:11:25

I'm not sure. We were Barclays for our accounts and mortgage, and at our last mortgage application he had our current accounts up on the screen while doing the mortgage app. He used it to check our direct debits for gas/elec, child benefit going in, council tax, Sky etc. And used this info to calculate affordability. He didn't point out anything such as 'how come Mrs bear spends so much money in coffee shops and on eBay?' But then that's my own business provided I'm within my funds. I imagine if I was consistently overdrawn, or exceeding my limit every month then that in itself would be an issue, not what I'm spending it on.

elfofftheshelf Mon 03-Oct-16 08:21:39

They do analyse your spending habits in as much as they check your outgoings on utilities etc. They also do some analysis on personal spending to check that it's in line with what you estimated when they provided the AIP. In my recent mortgage application (Chelsea Building Soc) they came back to query some large amounts (over £1,000) but otherwise it was fine. I don't have an overdraft though, and from my experience (friend who works in retail banking), they will look more closely at a spending pattern that goes into OD each month. That's not to say they won't approve, just that the levels of checks are more detailed.

thenewaveragebear1983 Mon 03-Oct-16 10:04:56

I suppose that if you did go into your overdraft every month, and were consistently spending more than you earn (which would be why you are overdrawn all the time) then they might be justified in querying your affordability for the mortgage. You really don't want to be paying a mortgage that you can't really afford and they are doing you a favour really by querying any concerns they have. I don't mean you per se OP but just generally.
One thing we were told- they will ask you how much you think you can afford to pay each month. Give a generous estimate. If you say £1000 for example, and then the monthly payment works out at £1001, they will seem it unaffordable - the guys at Barclays told us this!

Prinbeck Mon 03-Oct-16 11:59:23

Just spoke to my financial adviser she says the statements don't look great in parts but also says it shows I pay all my outgoings each month she said I have a 70% chance of getting it it was 95% before she seen the bank statements sad I'm really doubtful I'll be accepted sad

lilymty Mon 03-Oct-16 12:44:19

We have just had our mortgage from Halifax. They looked in for all of our bank statements in detail. They asked questions about where money was going etc. They turned us down after they had given us a map because the valuer had put they we were being given £500 off the sellers which we weren't. After asking for them to change the information we were approved. They are very quick. We had ours within 2 weeks.

Prinbeck Mon 03-Oct-16 12:54:10

How long did it take to find out you had originally been turned down?

GinIsIn Mon 03-Oct-16 12:59:30

We have a mortgage with Halifax and while they looked at everything, they also provided us with ample opportunity to explain everything like your Vodafone thing (actually it was a Vodafone fuck up with us too!!) and then they sent all our explanations to the underwriters so if it isn't your fault they will take that into account.

Prinbeck Mon 03-Oct-16 13:06:15

That's good thank you for the info I appreciate your response was Halifax strict with your application as I have heard they are the most lenient smile

lilymty Mon 03-Oct-16 15:43:48

It took two weeks because we were waiting on the valuers. After they had been it took a day and a day to change the paperwork.

Prinbeck Thu 06-Oct-16 10:21:04

I've had the money taken from my account to pay for the survey is this done before or after a decision has been made??

AnnaELC Thu 06-Oct-16 10:38:00

Hi Prinbeck I had my survey money taken by the Halifax on the day I gave the go ahead that we had made an offer on the house. I also had the mortgage deed paperwork sent to me before they had done the survey which I found odd. We aren't borrowing much though, so not sure if that was the reason.

lilymty Thu 06-Oct-16 11:01:44

They took the money before our survey but did tell us we could get it back if there was a problem.

lilymty Thu 06-Oct-16 11:03:27

Sorry posted too soon. So the fact they said we could have the money back if there was a problem makes me think it was done before a decision was made.

HarryPottersMagicWand Thu 06-Oct-16 11:08:32

We are with Halifax as well. Nationwide were our previous providers and we tried getting our new mortgage with them and they were utterly ridiculous so we went through a broker and used Halifax. Broker told us what we could borrow and we decided to apply for 10k more (well within our affordability, but because I am on sickness benefits, DH works, everyone was saying we couldn't borrow much) and Halifax approved it very quickly. Had no problem with them. They certainly seem to be more sensible than other lenders. We did get our credit cards fully paid off before we applied though and were very careful on our spending, don't have overdrafts and no debts so I'm not sure how much it will go against you. I can't see refunds from other companies going against you at all, no matter what it was for.

Prinbeck Thu 06-Oct-16 12:28:10

Thank you for the advice I'm presuming they have took the survey money before they will provide me with a decision I was hoping it was a good sign and maybe they have already decided to borrow, the unknown is driving me insane

thenewaveragebear1983 Thu 06-Oct-16 15:50:30

If it's a valuation survey it's non-refundable (or at least ours was) and doesn't mean it will definitely happen- sorry. They can't finish your application unless they have valued the house you intend to buy. They may come back and say it's not worth what you've offered, or they could still refuse your mortgage on the grounds of affordability. After they receive the valuation they then put together your mortgage offer and send you the paperwork.

Prinbeck Thu 06-Oct-16 23:25:05

I have received an email stating my application has been approved subject to a satisfactory valuation report, does this mean if the valuation is correct the mortgage offer will go ahead in scared to build my hopes up

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