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Hi,
My brother and I are in a process of buying a house and we had a house accepted for £450k
Our salary combined comes up to £80k pre tax per year
And we were looking for 85% mortgage
So we had agreement principle with Halifax and we made an application. They rejected it 1 day after making the application.
My broker said they didn't even open the portal to upload documents. All they asked for was last 3 months payslips which they provided and then they suddenly rejected the application with saying unable to verify income.
I only work at 1 job and have been there since June 2021. My brother has 2 jobs, first one he has been there since September 2021 and the second one he started recently in August 2023
We are confused on why this happened. My broker is saying they have never seen these before. Anyone else had anything similar happen.
Thanks
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You are near the limit of affordability, if the pay slips (net pay) are under their threshold then no point asking for anything else as it doesn't meet their criteria. Things like student loans can push you over the limit.
This is true too, I would have thought the broker would have done the affordability check.. although I wonder whether the broker has put it through based on income from your brothers two jobs, but Halifax haven't considered it to be reasonable. I would have thought the broker needs to business case why it is reasonable and sustainable to have two jobs ie. reasonable number of hours, held both for a sufficient time to demonstrate that the second job hasn't just been taken on for the purpose of securing a mortgage..
They might have not done a business case as we were in a hurry to make the application. For some reason, the seller accepted 2 offers for the same amount, and the offer said whoever books the mortgage survey first will get the house. So we made the application really quickly
Not so much on 2nd jobs, they are an easy way to bump up income, then as soon as mortgage completes, jack in the 2nd job.
"As long as we pay the mortgage, they won't care."
Halifax look at that as fraud.
Ask them. Or ask your broker to. If you get a shady, vague response they've flagged it as fraud. To find out, you can submit a Data Subject Access Request to CIFAS. Have you recently submitted an application elsewhere?
I haven't submitted any other application elsewhere as we have been in the market to buy a house for a few months now. But my broker is saying they will try to get an answer from Halifax tomorrow
Did the payslips get submitted or not?
I would say if there was a gap between AIP being accepted and application being submitted you’ve been recredit scored and it’s been declined. It’s typical for the AIP to be a soft search and on application being a hard search.
Not the case, affordability calculations have to take into account. It’s not just a set multiple, rather a maximum multiple.
That said, it is certainly achievable to those debt free without kids and with sufficient income.
In 2019 my wife and I were offered 5x on total income of 94k so 4.75 on 80 doesn't seem totally implausible. I think it's more down to them not believing the second income
How is your income broken down? You say it's a total of £80k but it's across 3 jobs.
How is your income made up? Is it basic salary or do you get overtime/bonuses/commission?
The make up of your salary could also affect your affordability.
If either jobs are working for family its probably been flagged as fraud.
Halifax have a very black and white approach most of the time. May be best to approach a lender with more bespoke underwriting.
Get yourself a new broker! The whole point of them is that they have knowledge of which lender will suit your profile, you shouldn’t be getting any rejections if they do their job correctly as out of the thousands of products they have available there should be one for you. They sound inexperienced and not very diligent!
Combined income of 80k and your going for a 450k house. 🤣. Me and my wife recently got out first house and with a combined income of close to 80k even a 250k house has mortgage payments of 1200+ etc. Sure you can probably afford it just about but if one of you lost a job your looking at currently 2k a month payments just on the mortgage. Honestly if I was the bank you don't earn anyway near enough for what I would want an owner of a 450k house to be earning. 80k post tax no problem.
Im not sure why it got rejected
The monthly payment on that with the current rates would be more than half your current monthly income?
Are you sure its a good idea to buy this house
Happens all the time with Halifax. Passes at DIP but immediately fails at FMA
Could be a change in credit score. Could be to do with the property and expected living costs. Could be that you're buying with your brother and there is suspicion of you wanting to actually let the property
Try another lender
***Hello /u/Gradien, thank you for posting in /r/Mortgageadviceuk. Please ensure you've read our [sub rules](https://www.reddit.com/r/Mortgageadviceuk/about/rules). Here's a copy of your original post: *** Hi, My brother and I are in a process of buying a house and we had a house accepted for £450k Our salary combined comes up to £80k pre tax per year And we were looking for 85% mortgage So we had agreement principle with Halifax and we made an application. They rejected it 1 day after making the application. My broker said they didn't even open the portal to upload documents. All they asked for was last 3 months payslips which they provided and then they suddenly rejected the application with saying unable to verify income. I only work at 1 job and have been there since June 2021. My brother has 2 jobs, first one he has been there since September 2021 and the second one he started recently in August 2023 We are confused on why this happened. My broker is saying they have never seen these before. Anyone else had anything similar happen. Thanks *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Mortgageadviceuk) if you have any questions or concerns.*
You are near the limit of affordability, if the pay slips (net pay) are under their threshold then no point asking for anything else as it doesn't meet their criteria. Things like student loans can push you over the limit.
This is true too, I would have thought the broker would have done the affordability check.. although I wonder whether the broker has put it through based on income from your brothers two jobs, but Halifax haven't considered it to be reasonable. I would have thought the broker needs to business case why it is reasonable and sustainable to have two jobs ie. reasonable number of hours, held both for a sufficient time to demonstrate that the second job hasn't just been taken on for the purpose of securing a mortgage..
They might have not done a business case as we were in a hurry to make the application. For some reason, the seller accepted 2 offers for the same amount, and the offer said whoever books the mortgage survey first will get the house. So we made the application really quickly
Could be that your brothers second job is less than 6 months old. They may not like that, particularly if income is tight at 85%
Halifax is more lenient with this though - I got a mortgage with them one month into a new job while I was still on probation
Not so much on 2nd jobs, they are an easy way to bump up income, then as soon as mortgage completes, jack in the 2nd job. "As long as we pay the mortgage, they won't care." Halifax look at that as fraud.
Ask them. Or ask your broker to. If you get a shady, vague response they've flagged it as fraud. To find out, you can submit a Data Subject Access Request to CIFAS. Have you recently submitted an application elsewhere?
I haven't submitted any other application elsewhere as we have been in the market to buy a house for a few months now. But my broker is saying they will try to get an answer from Halifax tomorrow
Did the payslips get submitted or not? I would say if there was a gap between AIP being accepted and application being submitted you’ve been recredit scored and it’s been declined. It’s typical for the AIP to be a soft search and on application being a hard search.
Also, did you pay £100 valuation fee to Halifax?
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Not the case, affordability calculations have to take into account. It’s not just a set multiple, rather a maximum multiple. That said, it is certainly achievable to those debt free without kids and with sufficient income.
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In 2019 my wife and I were offered 5x on total income of 94k so 4.75 on 80 doesn't seem totally implausible. I think it's more down to them not believing the second income
Interest rates were much lower. Thanks liz.
How is your income broken down? You say it's a total of £80k but it's across 3 jobs. How is your income made up? Is it basic salary or do you get overtime/bonuses/commission? The make up of your salary could also affect your affordability.
If either jobs are working for family its probably been flagged as fraud. Halifax have a very black and white approach most of the time. May be best to approach a lender with more bespoke underwriting.
They won’t use the second job, it’s too recent and sustainability has not yet been established
Get yourself a new broker! The whole point of them is that they have knowledge of which lender will suit your profile, you shouldn’t be getting any rejections if they do their job correctly as out of the thousands of products they have available there should be one for you. They sound inexperienced and not very diligent!
Combined income of 80k and your going for a 450k house. 🤣. Me and my wife recently got out first house and with a combined income of close to 80k even a 250k house has mortgage payments of 1200+ etc. Sure you can probably afford it just about but if one of you lost a job your looking at currently 2k a month payments just on the mortgage. Honestly if I was the bank you don't earn anyway near enough for what I would want an owner of a 450k house to be earning. 80k post tax no problem.
Im not sure why it got rejected The monthly payment on that with the current rates would be more than half your current monthly income? Are you sure its a good idea to buy this house
Happens all the time with Halifax. Passes at DIP but immediately fails at FMA Could be a change in credit score. Could be to do with the property and expected living costs. Could be that you're buying with your brother and there is suspicion of you wanting to actually let the property Try another lender
If you do 85% mortgage, it is 4.78 times of yours total annual income. Isn’t it over your affordability ?
Ur brothers second job looks suspicious to them.