home
in

Mortgage decline and appeal... Opinions/advice appreciated

Last post Fri, Mar 30 2012, 9:44 PM by MrsZ. 7 replies.
Sort Posts: Previous Next
  •  Fri, Mar 30 2012, 9:44 PM

    Re: Mortgage decline and appeal... Opinions/advice appreciated

    Zeb and Maxstream

    Just wanted to say a massive thank you for your replies, we were finally approved (subject to valuation) yesterday, huge relief!

    Thanks again

    Alison
    • Post Points: 5
  •  Thu, Mar 22 2012, 11:42 PM

    Re: Mortgage decline and appeal... Opinions/advice appreciated

    Sounds positive to me, it seesm they are happy with the payslips and income. Now they just need to be happy with the adverse credit and it has been pased to s senior underwriter to assess and pass off althogh personally I would think that if it was going to fail on adverse credit it would have done so by now.

    Lets just hope the senior underwriters view is the same as the not so senior underwriter

    • Post Points: 20
  •  Thu, Mar 22 2012, 6:48 PM

    Re: Mortgage decline and appeal... Opinions/advice appreciated

    I received this email from our mortgage advisor... Hoping it's good news (although the last part was rather confusing)


    'Our underwriters have reveiwed your documents and have no concerns.
     
    Since your application doesn't meet our normal criteria, This is now being reviewed by our senior underwriters and hopefully they will make a decsion today or tomorrow'
    • Post Points: 20
  •  Tue, Mar 20 2012, 12:38 PM

    Re: Mortgage decline and appeal... Opinions/advice appreciated

    Hi Zeb

    Thanks for your reply, it was most useful. 

    Your right although we are porting our product, there is a penalty of around £2000 as we are reducing our mortgage by £85,000. 

    The application was refused in the first place due to adverse credit. Something we want to work on but in order to do that we need to move to somewhere more affordable. 

    We have signed a third party authority form to allow the Halifax to approach my husbands employer for clarification on his pay slips/wages. 

    They now have all the document scanned on to the system so it's the waiting game 

    Fingers crossed!
    • Post Points: 5
  •  Tue, Mar 20 2012, 8:55 AM

    Re: Mortgage decline and appeal... Opinions/advice appreciated

    maxsteam:

    As you've signed up to a fixed term deal that ends in 2013, my feeling is that you will find it a lot easier to move if you can hang on until after that deal has ended before selling.

    Porting a mortgage means that you transfer the mortgage onto another property without any penalty to be paid. In this case there would be no penalty what so ever as the contract has not been broken, just transferred to another property......Saying that, if you are significantly reducing your mortgage value due to this move the penalty may be applicable in some form and Halifax will insist that this is paid upfront before any new mortgage or port can be completed

    The first question that needs to be asked here is are the problems with the existing application with Halifax due to adverse credit or affordability? You have mentioned that the payslip etc is confusing but you have also suggested that your credit may not be sufficient to pass the application, you suggest it may not even be sufficient to gain a rental property.

    I don't really have too much that can help you in this case, if the application has gone to appeal then it is purely up to Halifax how they proceed but I have found to my cost with several applications to Halifax that most appeals remain in decline. You may be able to ask them to approach your husbands employer for an employment reference which might better detail his income but if it comes down to any adverse credit or blips on your credit file then it will most likely be underwriter discretion and there is not alot you can do to sway the decision your way.

    There are other lenders out there that will allow a little more adverse credit than Halifax but you will then definitely need to pay the Early Repayment Charge then (probably around 2% of the mortgage balance) but you have to understand that if you cannot be taken on by a high street lender then to be accepted by a non main stream lender will more than likely mean that you are going to take a far higher interest rate for the risk on your application and you have to ask if will this work out to your advantage or just put you in the same position with a smaller debt but the same mortgage payment and different company name.

    I would suggest to Halifax that they apply for an employers reference to help clear up the income debate. If this does not help then speak to an independant mortgage broker as they will look at your circumstances and know better where to place you for your mortgage. I would not advise to speak to any bank adviser (they are mainly just monkeys dressed in suits and rarely qualified and certainly not allowed to give advice) as they will only push you onto their own products without fully assessing your position....they are paid to get as many applications as they can into the bank, not to get them passed and completed.

    Good Luck

    • Post Points: 20
  •  Tue, Mar 20 2012, 7:43 AM

    Re: Mortgage decline and appeal... Opinions/advice appreciated

    Thank you maxstream, it was an option we had considered and may be the only option. But at the minute I'm not sure we would be able to struggle on until next June

    Ali
    • Post Points: 5
  •  Mon, Mar 19 2012, 10:05 PM

    Re: Mortgage decline and appeal... Opinions/advice appreciated

    MrsZ: My question is, if they do decline us again what would be my next option?

    As you've signed up to a fixed term deal that ends in 2013, my feeling is that you will find it a lot easier to move if you can hang on until after that deal has ended before selling.

    • Post Points: 35
  •  Mon, Mar 19 2012, 9:27 PM

    Mortgage decline and appeal... Opinions/advice appreciated

    Hi all, this is my first post. Apologies for errors or if it's on the wrong place etc. Just wondering if anyone could give me some advice/opinions on my situation. I will try an keep it as brief as possible. 

    I have held a Halifax mortgage since dec 08, our current balance is 152k paying £901/month. Our rate is fixed until June 2013 (we have never been late or missed a mortgage payment)

    Due to the amount we are paying (and being a family of 6) we are finding it increasingly difficult to pay for everything (leasehold property, so ground rent etc is also payable)

    We have made the difficult decision to move away from family and live an hour away to improve our credit score and finances. 

    In dec I approached the Halifax about porting our current product. Initially they said yes, did the checks all was fine. We then rec a letter saying they weren't proceeding, basically because of our credit score. 

    We have appealed the decision on the basis that we want the new mortgage to be 66k at £410 a month, drastically decreasing the risk to the Halifax. They said in principle it was fine as long as all equity from the sale of our current house goes into the mortgage (less reasonable amount for fees)

    We accepted an offer on our property 3 weeks ago, had an offer accepted elsewhere 10 days ago. 

    We have just faxed over the paperwork the underwriters have asked for (3 months pay slips and bank statements etc). 

    However as my husbands payslip is confusing (he has regular overtime) my fear is they will further decline us.  I should probably say that they have expressed concerns because they found it confusing. 

    We may not pass a credit score for a rental property and therefore would possibly have to pull out of the sale. They don't strike me as particularly responsible if they force us to stay paying an amount we cannot afford!

    I hope this all makes sense, apologies it's long and I've flitted around all over the place. 

    My question is, if they do decline us again what would be my next option? 

    Many thanks for reading


    Ali
    • Post Points: 20