Halifax mortgage-how likely to honour AIP?

sturgeon

I've had an absolute nightmare as a first time buyer from start to finish, most recently with the valuation of the property (a new build) which seems to have now just about been resolved. I obtained an AIP from Halifax around 2.5 months ago or just under.

Considering the incredible amount of work and stress that has gone into this (a lot which is due to Halifax themselves) I am now very worried that Halifax will randomly decide to not offer the mortgage for some reason, which would be devastating. Since my AIP the house price has been reduced just over 6% and my salary has increased, making it even more affordable.

How long should their AIP last? And one thing which concerns me is that apparently Halifax do a 'soft' credit search before an AIP. Early next week they'll get confirmation from the vendor that the price has been dropped to the valuation price, so before just releasing the mortgage offer do they do more checks? They've already looked at all my bank statements, queried them, contacted my employer etc so all the groundwork was done before they finally did the valuation. I shouldn't be turned down as I have never had any arrears with defaults or court orders etc or anything like that, I have a CC which I pay every month off on a direct debit, had a mobile contract for years, am renting right now etc so there shouldn't be a valid reason to do so. Just it would be completely typical that after it has all been sorted they'll change their mind as they have been so nit-picky up to now.

What do you think? Any experiences?

sturgeon

And also another question, seeing as all the groundwork is done and all that they were waiting for was to resolve a down-valuation which is now resolved, when they are informed the vendor will now sell for valuation price, how long would it take them to release the mortgage offer? As I would need it literally in days as I've a very tight time limit now imposed by the company behind the FTBI as the application has taken so long.

Comyface

If you've paid for the valuation through Halifax, they've already done the full credit check. The AIP check is just a 'soft footprint', you're right, but when you have found the property you're going to buy and given them the details, that's when they do the full check. They don't normally need to do another one (sometimes if it drags on a while they will, but I mean about three months after full application). So the credit check part should be okay.

If that's all they were waiting for, then they're usually quite quick to get an offer out, up to 48 hours from when it's referred to the underwriters. The fact that they instructed the valuer after being nit-picky (as you put it!) indicates to me that they were happy with the info they had up to that point, so last remaining point was the valuation which is now sorted.

Good luck in your new home.

sturgeon

The valuation problem has been sorted out and now Halifax have been advised of the new price. The application has 'now gone to the underwriters' and the offer should hopefully be made within 48 hours.

What exactly does this mean? My concern still lies in the fact someone along the line will decline the application. Though I thought all credit checks and everything else was done...so am unsure why it needs around two further days with 'underwriters'-what are they looking for? You may be able to tell I'm quite a paranoid person...however this is largely in part that the very fact I would get the mortgage seems unlikely considering the process had taken so incredibly long, that it seems like it can't actually reach a resolution!!

happybroker

the extra days will be while it sits in a pile waiting to be dealt with which hopefully should be as simple as them checking over the paperwork that has already been checked and then issuing the offer.

The Halifax aren't the easiest firm to deal with but if you are using a broker they should be able to apply some pressure if things aren't going as planned which does help....I know last summer I spent nearly £150 in mobile phone calls from France trying to sort out a messy case with them

sturgeon

Ok then...so if they're checking paperwork fair enough. I just am concerned they will try and come up with any reason not to issue the offer. I can't think of a valid reason but they've already moved the goalposts many times, so to actually get the offer seems too good to be true! They don't do further credit checks, I asked them...is this true? Not that it would cause a problem, but at least they can't suddenly say my credit check failed etc. With an increase in my salary and a decrease in the house price since applying, surely there's even more reason to lend seeing as they agreed to in principal originally...

Finally the application was made around 10 weeks ago, as it's been a while I hope they don't start asking for documents again and doing credit checks..

TEDDYRUKSPIN

Sturgeon. The mortgage agreement in principle paper is just pile of rubbish. It is a piece of paper which each mortgage financial institution passes to each customer in order for them to get viewings from estate agents etc.
The only way you will know if you are successful with the mortgage is to go through a full mortgage application and that means a full credit check etc etc.

sturgeon

I have stated that I have put in a full application, just it has gone to underwriters now for up to 48 hours to potentially release the mortgage offer. My question was based on what this may mean.

TEDDYRUKSPIN

Underwriter means that it has gone up to another second team for signing off.
Halifax use to have two systems of a method of signing off the mortgage before the credit crunch. Previously if you had a bank account with them and a nice salary going in and out with any debits, the computer would usually say YES!

But now, majority of mortgages now say refer on. The advisors then send them off electronically to halifax mortgage service centre for scrutiny. They will go through everything down to the fine wire. They will look at your bank statements, credit checks, deposit etc (and even see if you have taking out insurances with them or with others) and make risk analysis based on the mortgage.

48 hours is actually deemed fast. Some companies like First Direct can take 8 weeks for an answer, HSBC maximum 5 days and C&G etc similar.....

You get the picture. Unfortunately it is a waiting game. As long as you fit in the affordability criteria, you will be fine.

sturgeon

Ok, thanks. However I have already seemingly gone through that process. I've had credit checks, sent bank statements which have been scrutinised, questions asked, transactions queried, forms sent to and from my employer etc etc. Then they agreed to do the valuation finally. The property was undervalued, took around 6 weeks to sort that out but now it's sorted. So Halifax were told this afternoon the new price (which is the same as the valuation price) so it's now 'gone to underwriters' before the offer is released. So it seems it's past the stage you've discussed hence I don't get why the decision isn't just now given without more checks or whatever they're doing.

sockpuppet

I work with Halifax nearly every day and I must say I find them pretty good.
As you said, your application has already had its initial underwriting and credit check and the valuation instructed. The problem with the down val has been sorted, and I assume evidence has been provided to Halifax of the new price being paid.
All applications after valuation go back to the underwriters to be signed off (its normally just the valuation being checked at this stage) so as long as there are no other issues on the val report there should be no problems and it is sent to another dept for an offer to be issued.They usually state 48 hrs for the underwriter to review/sign off and another 48 hrs for the offer to be issued. If you are using a broker, they can print the offer from their Halifax webite.