halifax mortgage advice led to poor credit rating

Biff0r

I will try and make it brief and save people a long read, more info can be added if requested.

Basically about 2 years ago I went from weekly pay to monthly pay. Rang up Halifax to sort out date change to end of month. Was informed that Halifax last day of their calendar month is the 28th of each month. Fine, but I get paid last working day of the month. Customer services person said that if funds are not in the account on the payment day they will try for the next 7 days until funds are available. No problem here at all.

So for last 2 years we have been paying the monthly mortgage soon as my funds are in billing account no the last working day of the month, mostly around 29th, but some have been the 1st of the next month due to last day being a week day and cash not taking out till the following day.

I am coming up to the end of my fixed rate time period so enquired about new deals, talked into a re mortgage and offer seems attractive. Went through the details and was told that they would ring back in minutes few. Came back and I was declined as over the past 12 months I have missed all my payments, this was a total shock and surprise. Had my mind set now on a nice holiday and consolidation of credit and existing loans so went with Loans.co.uk, wnet with another atrractive deal, after 2 weeks came back stating that Halifax had avised them I have missed 3 payment sover the last 12 months, looked at my bank account and all payments had been made within their '7 days' grace period with ease. They re-asked for more information but a different report came back saying we had missed only 1 payment. They have rejected my inital loan offer and gave us an overinflated loand which I have rejected.

I have spoke to Halifax and they agree that 28th is their last day of the month and the 7 day grave period is one of their services, but also said this is a inhouse policy and because I have not paid on the date chosen they have to show it in my credit file, which in turn has given me adverse credit now for the last 2 years. (also to note that their own statement of payments shows me paying every month as well.

Do you think I have a good stance to make a complaint based on misadvice on initial set up of the standing order?

Can I get my credit rating back?

beecher

Halifax have never mentioned a 7 day grace period to me when I've sorted out my mortgage - do you have anything in writing from them stating they were allowing you this? I take it you've now changed the date to the 1st of the month to stop this from continuing to happen? Are you going to be stuck on the SVR now? I think you need professional advice, and make sure you take any written evidence of the grace period with you.

Biff0r

Only advice I have got is, pay on the 28th then pay again few days later on 1st, but that a lot of cash, was thinking of small loan just to do that and start from fresh.

Maybe grace is wrong word to use, they said try for 7 days then it is classed as a 'Missed payment'

beecher

Biff0r wrote: »

Only advice I have got is, pay on the 28th then pay again few days later on 1st, but that a lot of cash, was thinking of small loan just to do that and start from fresh.

Maybe grace is wrong word to use, they said try for 7 days then it is classed as a 'Missed payment'

That doesn't sound like me to an agreement to pay your mortgage late - it sounds to me like they were explaining the procedure if funds aren't available when they go to get them. It is unfortunate, but unless you've got something a bit more definite written down I can't see how you've got a case. However, that's just my opinion which isn't based on any experience in this area, so go and get proper advice.

I think you have to get enough money together to pay on the 28th and then the 1st or else this'll keep happening. You also need to sort out whether you're going onto the SVR when your fixed rate ends, and how much that'll be and start budgeting for that.

Good luck.

inca_2

Why not just have your mortgage go out on the 1st of the month if you get paid at the end of the month, then it's the day after you get paid?

Biff0r

beecher wrote: »

That doesn't sound like me to an agreement to pay your mortgage late - it sounds to me like they were explaining the procedure if funds aren't available when they go to get them. It is unfortunate, but unless you've got something a bit more definite written down I can't see how you've got a case. However, that's just my opinion which isn't based on any experience in this area, so go and get proper advice.

I think you have to get enough money together to pay on the 28th and then the 1st or else this'll keep happening. You also need to sort out whether you're going onto the SVR when your fixed rate ends, and how much that'll be and start budgeting for that.

Good luck.

Yeah I don't think it is an agreement but rather bad advice! I am writing a complaint as we speak.

inca_2

I don't understand the problem though, if you knew you wouldn't have enough money in your account and they let you change your DD date why not set it up for after you've been paid, ie the 1st or 2nd so that you know you will have the money to pay the mortgage rather than messing around adding extra hassle for yourself by guessing when it will be taken?

beecher

inca wrote: »

I don't understand the problem though, if you knew you wouldn't have enough money in your account and they let you change your DD date why not set it up for after you've been paid, ie the 1st or 2nd so that you know you will have the money to pay the mortgage rather than messing around adding extra hassle for yourself by guessing when it will be taken?

I suppose the OP must've wanted to delay the first payment when the mortgage was initially set up - there was another poster who was paid at the end of the month and wanted to set up their new mortgage to come off on the last day possible so as they could have an 'extra' pay with no mortgage payment coming out of it.

Biff0r

inca wrote: »

I don't understand the problem though, if you knew you wouldn't have enough money in your account and they let you change your DD date why not set it up for after you've been paid, ie the 1st or 2nd so that you know you will have the money to pay the mortgage rather than messing around adding extra hassle for yourself by guessing when it will be taken?

If i set it up for 1st I will miss 1 x payment as payment is due 28th. So either 2 payments within a few days or miss 1 x entire payment.

As I said (I think) only reason i went with the way they suggested as didn't realise it would harm it the way it has done. We were fine untill it changed, think it was due to going from weekyl pay to monthly pay and didnt have much cash at time.

beecher

Biff0r wrote: »

As I said (I think) only reason i went with the way they suggested as didn't realise it would harm it the way it has done. We were fine untill it changed, think it was due to going from weekyl pay to monthly pay and didnt have much cash at time.

The key is whether they suggested this, or whether they were explaining to you the procedure for paying the mortgage late. I'd think you'd have to have proof that it was their suggestion.

Biff0r

If it was stated as late payment then I wouldn't be too bothered, but they are classing it as a missed payment, even though I have never missed a payment