Halifax Mortgages - Please Help

DESPERATE_FTB

Hi

My girlfriend and I recently were accepted by the Halifax for a mortgage well we got a mortgage promise from them with no problems or referalls.

Within two days we had put a full application in through our broker and the next day it came back as declined.

We have been told that we can appeal but is it normal for a decision to turn around so quickly in three days. There have been no changes on our credit reports in this time.

Please help, I am not sure if it is worth appealing or not.

Thanks

_Andy_

What was the reason given for the decline?

DESPERATE_FTB

All they said to my broker was to check my experian report and that it wasn't a major issue.

Basically we are looking to borrow 75% mortgage with the new build paying the remaining 25%.

My broker says it is worth arguing as the house builder is owned by the Halifax but I am not sure that they will change their minds.

I have missed a couple of payments in the past but have good reasons for this but have no defaults or ccj's.

DESPERATE_FTB

When I say pay the other 25% I mean that they will put a second mortgage on the property for this amount and it is deferred for five years.

Tiddler_2

You're buying under a shared equity basis, Halifax do prefer these schemes to be done with a clause that the builder gives you 10 years to buy the other 25%, but as they have a big interest in the builder they may have agreed a 5 year term, though I would be concerned if you are not in jobs where your circumstances are not going to change significantly over that 5 year period.

The fact that the Halifax "own" the builder will not be grounds for them to up hold the appeal - as the underwriters will probably not even know that!

The Underwriters are more likely to look at it and say that you are not putting any of your own money into the purchase (although they do allow you to borrow 100% of the value of your 75% share of the property on these schemes).

You have nothing to lose by appealing the decision, but they will usually need an exceptional reason for this.

DESPERATE_FTB

Thanks for your response.

Although it is deferred for five years we will only then pay 3% interest on the 25% balance. The full amount has to be repaid within then years.

Is it not weird that there decision changed in the space of three days though?

That is what gets me. How can my credit file change in that time.

Dan_Collins_2

Two things, do you have more than 2 prev address' in the last 3 years? If so they only score the first 2 at AIP stage.

Second, they may say they will do it, but I think even the Halifax are a little scared of new builds, shared ownership or not. New builds are falling in price and fast.

DESPERATE_FTB

No I have lived with parents and then rented for 18 months.

I actually got a 15% discount on the list price of the new build as my friend had told me the same thing about their prices.

I know that my broker has got the new build mortgage area manager (or so he says) involved and they will look into it early next week but just fretting now.

I know a promise is not a guarantee by any stretch of the imagination but I am right in thinking that they check my credit file at that point aren't I. To be honest that is my only hope!

Dan_Collins_2

My old office have had the Halifax do this 4 times in last month. I dont want to sound negative but prep your self for a fall!

DESPERATE_FTB

Oh. That is not good.

Thanks for the advice. Not what I wanted to hear but it is what I was thinking.

I take it your old office has had no sucess at all then.

Dan_Collins_2

The 4 we had went out the window, however we have always put a lot of cases through the halifax, it could be a run of bad luck!