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Halifax Declined My mortgage - adverse credit, have said I can appeal?

Last post Thu, Feb 17 2011, 10:43 PM by Zeb. 2 replies.
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  •  Thu, Feb 17 2011, 10:43 PM

    Re: Halifax Declined My mortgage - adverse credit, have said I can appeal?

    I do kind of feel the broker is responsible here and not the lender. Halifax (as do all lenders) have very rigourous checks that they have to fulfil in order to issue a mortgage offer and it is only after all of these have been satisfied that they will issue a mortgage offer and in any mortgage application process the lender (or yourselves) have the right to withdraw from the mortgage application at any time without being committed to the loan. Halifax have used this right before the offer was even issued as they believe they have received information that shows your partner in a worse light than was orignally known. This has now gone against what their criteria allows and they have declined the loan and at the end of the day...if there is another default that has come to light it is hardly the lenders fault for finding it...I think the responsibility should lie with the partner for not knowing about it/ not declaring it/ incurring it in the first place.....take your pick!. You do also have to remember that when the first credit check is done on the agreement in principle it is only a computerised search through a credit reference agency. This gives the initial yes/no decision. Once past this then after submission of the application and any requested documentation then the underwriting begins and this is all human eyes that will scrutinise the whole application and all documents and this will again involve searches and checking out past addresses and any other potential names people may have gone by and more general affordability check to ensure that the risk that the lender is taking on is a fair risk for them.

    Let me tell you that as a professional broker I would not have been suggesting that you look at Halifax if you have got 2x defaults that are unsatisfied (unpaid) as in my eyes this would lead to a decline unless the defaults were over 3 years old.

    I believe that your broker should have taken this line too and while I have been guilty of telling clients "it just needs rubber stamping" and so on it just digs the broker a big hole when the lender then declines the application. I prefer the realistic approach and tell you that I don't think you will get the mortgage. I am still suprised that you made it through the AIP in the first place with 2 defaults...unless the defaults do have some age to them.

    next step.....I am not sure. I think the loan you are looking at is too high for an adverse lender to consider. I would loiokm for anew broker and see what he suggests....but as Maxsteam has said...find out what this other default is first.

    I also wouldn't appeal this.I don't think you will gain anything from this other than another decline and thats not what you want to hear

    • Post Points: 5
  •  Thu, Feb 17 2011, 9:49 PM

    Re: Halifax Declined My mortgage - adverse credit, have said I can appeal?

    Paying off the defaults will not remove the items from the credit file but it will change the status from unpaid default to paid default. You can contact the credit agencies direct to find who the other default is with. Appealing is unlikely to make a difference as you will be asking Halifax if Halifax have got things wrong.

    Different lenders do have different criteria but a good broker should be able to judge your chances better than this so you should look for another broker if applying again, in my view. A good broker can look at your credit file with you and can use that information to give a better opinion than anyone here.

    • Post Points: 20
  •  Thu, Feb 17 2011, 9:19 PM

    Halifax Declined My mortgage - adverse credit, have said I can appeal?

    Bit of a problem and I'm hoping someone can help:

    I recently applied through a broker for a mortgage, he initially contacted Nat West and we were approved in principle for a 90% - we found a property and began to make a full application and it was declined immediately. I was angry with my broker as I felt he had mis led me, we then secured a AIP with Halifax for 85%, he explained as the deposit was higher we should be fine on the credit score. I was worried but he assured me all OK - my partner has 2 defaults amounting to £590 on his Experien credit report, I asked my broker if I should pay these off as I was concerned it may effect a decision but he advised us not to as it doesn't make a difference.

    Anyway, Halifax approved the full application based on salary confirmation, all good and all done, then internal file check was requested but came back fine, valuation transcript was requested and it was fine, we were told we would get an Offer of Loan in next 2 working days. I had to keep on at my broker and eventually he contacted his intermediary at Halifax who checked the case and sent me an email to say only needed 'rubber stamping' and it would be out the next day. I called my broker the next day to find Halifax had declined my mortgage????!!!!!

    I am stressed, upset and now lost a house and have to move out of my rented flat as we were told we had the mortgage. After a number of phone calls to Halifax and broker it appears that the issue was my partner has had more than 3 addresses and they check the last one manually after all approved - this produced a default that we are not aware of and they won't tell us who it is with or the amount outstanding? We have made a complaint about the process they have used and we have been told we can appeal the decision although we must pay off the defaults - this is not a problem and I have done it today (I would have done it before the application however my broker said we didn't need to?).

    Does anyone know if paying off £591 ans appealing will make a difference?? Is it likely they will change their minds in light of the fact that their process is awful and they should perform a full credit check at the outset of the application?

    If anyone has any advise I would love to know what to do!

    Thanks

    Sophie

    • Post Points: 20