Anyone applying for a mortgage with Halifax or already have one?

muggz

Does anyone know what would happen if the bank behind your mortgage goes belly up?

lisal0u

Hi,

I’ve got a mortgage with Halifax. I don't think they'll be going belly up anytime soon though. They seem to have avoided the riskiest lending and also they don't invest in the US (or so the mortgage lady told me) but I'm not so sure that’s true.

If they were to go belly up the debt would just be passed onto someone else and you would have to pay them. It would be nice if the debt disappeared hahahah

Lisa

WhySoHard_2

I applied. They turned me down, saying that I do not have enough on my credit report.

cmart021

Just had a mortgage agreed in principle with them few weeks back and was submitted today. Doubt they will go belly up otherwise we would have been told to beat it immediately.

Although I do think rates will change as advisor was pushy to get details away asap due to recent events.

PasturesNew

If you have a mortgage with a lending institution and they cease to exist, the debt is still due. Somebody (the receiver at worst) will take over the debt book and will collect all the monies on the outstanding debts.

In time, any debts might be harmonised into the new owners' terms - which means they'd change your rate as soon as possible, if they were able, to match those of their other borrowers.

So nothing would really change significantly. You would absolutely, positively, totally still have to keep paying it back.

The people who lose out in these circumstances are only shareholders and savers with over £35k in savings.

hethmar

Not forgetting what happened with Northern Rock who postively discouraged the less credit worthy borrowers to continue with them when their fixed rate deals were up, leaving them to flounder about looking for deals that were of much higher rates than their previous ones.

Ian_Griffiths_Halifax

It won't be long before the public start doing Credit Checks on the Lenders before applying for a mortgage :rotfl:

Cat695

Ian_Griffiths_Halifax wrote: »

It won't be long before the public start doing Credit Checks on the Lenders before applying for a mortgage :rotfl:

Heh thats a good idea......but wouldn't work as no one would borrow as they would realise that most banks in the UK rob you blind


When i was based in Germany the German banks never wanted to give you a loan.....but an overdraft.....why? well the answer that was given to me (by a rather bewildered German bank manager at such, in his mind, a stupid question) was because the overdraft saved me lots of money because the interest was cheaper than getting a loan!!!

so i walked away with a 10000 DM (about £3000, yes a few years ago) overdraft which i could pay off when ever i wanted as long as it was paid off before
1. I died of old age
2. I left their bank
3. I left Germany for good

No minimum payment and even better was the money was in my account before i shook his hand and walked out of the bank from first walking in!

almar_2

Ive had my Mortgage with The Halifax since 1990 and they have been excellent. Never had a problem, always pay on time and go to annual reviews to get the cheapest deal for us. Nearly paid it up now.

Hope it's ok to say they have been excellent, without sounding like I am selling something. I'm not intending to.

almar

sima_2

We have a very large mortgage with the Halifax and are about to renew on a new deal with them. They have been great so far.

I think it will be fine as long people don't start a panic by withdrawing all their savings. That kind of panic can cause even a healthy institution to buckle.

Zapp_from_Planet_Zogg

About to leave the Halifax - on balance, not overly impressed.

Out of 28 payments (have been with them for just over 2 years) they have messed up 2 direct debits - So a hit rate of 1:14. In sorting these errors out their 'customer service' people were slow and reasonably obnoxious :mad: - although, it was a UK call centre! :T

I enquired about new mortgages with them but, as I also want to borrow a bit more to sort a new bathroom, they want me to pay a fee for the new mortgage and another fee for the additional lending. Considering that the outstanding mortgage is only around £40,000, these fees have a big effect on the balance!

I was spoken to like I was some sort of imbecile when I queried why I couldn't be given the indicative rates for a new mortgage, until they had credit scored me for the further advance.

Oh, and better rates can be found elsewhere too.