Mortgage application 5% less than AIP

[Catnipdelight]

Had an AIP with Halifax for 90% LTV mortgage. My broker was sure we would sail through, and we've spent the last few weeks searching. Had an offer accepted somewhere and finally had it valued today -- a mere £500 below what we offered. Happy days, we can pay the difference.

Except my mortgage broker had to reapply for the mortgage with the new figure and now Halifax have decided they can't lend me 90%, it can only be 85%.

So now our deposit would need to be £60k instead of £45k. I'm bloody gutted.

Has this happened to anyone else? Broker asked me to send him my credit report to see if we can appeal it. I can't see anything on there that would have caused them to change their mind between now and when we got the AIP. Why does that happen? I feel so on edge and stressed constantly, this process is awful!

#firstworldproblems and all that. I know.

aip is just a non-binding offer.
unfortunately only with the actual house offer the mortgage can be evaluated properly.
speak to your broker about alternatives.

sorry, I hope it all works out.

I would ask broker to find another lender. Good luck!

That’s incredibly annoying.
And I’m dreading that being the case with us, we’ve just applied for a mortgage today 😬.

But.. the aip is just them basing it on your income, any extra debt/payments/commitments you have will be considered when you actually apply.

I got stung by this taking out a loan once, 95% likely I’d get headline rate based on what I said.. didn’t get it. Fuck knows how they work it out.

😔 all my debts are paid off, have had a few credit cards over the years so plenty of evidence of paying on time every month and clearing all debt. No dependants, no expensive car costs or anything like that, just rent! It just seems so arbitrary and ridiculous to suddenly drop it like that. The repayments would be less than I pay in rent 😪

Argh so annoying. I agree, go to another lender. We had something similar with our last move (mortgage valuation 10k less than we’d needed). An alternative lender was fine!

There'll be another lender.
I would ask Broker to look again.

Thanks for your encouraging words, everyone.

Here's hoping 🤞

@FTEngineerM Good luck for yours! I hope it goes through smoothly ❤️

I've just realised it wasn't an agreement in principle!

It was an agreed mortgage subject to valuation. So this £500 down value has thrown a spanner in the works somehow.

That makes no sense then?!

Has there been a negative ‘material’ changed? I spied this sentence on the mortgage offer extension page with our lender. So any additional borrowing or reduction in income?

Or could they just be being super cautious now for some reason unknown to us minions? 😬 argh it so hard!

Good luck. if I were in that position I’d just go with someone else.

@Catnipdelight

I've just realised it wasn't an agreement in principle!

It was an agreed mortgage subject to valuation. So this £500 down value has thrown a spanner in the works somehow.

That's really weird. They don't usually offer a mortgage until they've done the valuation?

But also weird in that when I got my mortgage offer, the house didn't need to be the same as what I'd offered, because the deposit counts for something too, the bank aren't lending you the full amount. The value the bank needed was halfway between the offer price and the mortgage value.

Definitely ask your broker to try a different lender.

Or actually, get a different broker because they sound a bit useless.

Honestly, try another lender. We had mortgage agreed in principle (HSBC), found a house, had the mortgage valuation done and it was under valued by £25k. Our broker switched lender, the second mortgage valuation agreed with the sale price (Halifax).

We actually pulled out not long after that due a dodgy survey and we are still looking nearly a year later. But switching lender may be all it takes.

We were offered £15k less than our AIP too, but our broker appealed it and we got the full amount, so definitely worth appealing. We didn't even have to submit any further evidence, our broker just pleaded our case (with Santander).

That’s interesting @Paddingtonthebear would it have needed an estimated £25k to fix the dodgey items on the survey?

Possibly but not sure the valuer was apparently only there for 10 mins and not sure they would have seen/picked up what was found by the surveyor on the full building survey. There was a big problem with the chimney stack in the loft, the beams in the loft also rotting, hidden damp behind furniture in every room, potential issue with a boundary, potential issue with a mains pipe. We were already expecting to have to update the kitchen, bathroom and all the decor so it was just too much for the asking price they wanted. We withdrew our offer and it was back on the market two days later for £5k more. It sold again and I drive past it regularly. It has a lot of scaffolding up currently!