Halifax - our buyer's mortgage taking soooo long!

Hopejack

Can anyone confirm if the Halifax are facing large backlogs with their mortgages applications? I'm a bit doubtful....

I'm getting a tad stressed and fed up waiting for our buyer's (FTB) mortgage offer.

Situation is they offered and we accepted on our property in early March, property was taken off the market as a condition of the offer. I was told their had their mortgage in hand - turns out it was just an AIP! Valuation was done the week after so mid March and we are still waiting for their mortgage offer!!

They applied through a broker and only just today when I've started to throw a paddy has my Estate Agent managed to speak to the broker direct. They stated that a piece of documentation was requested by the underwriters last week sometime - they now have it but haven't looked at it yet due to a 'backlog' of work....

Does this sound fishy or what? We were told via my EA that the buyer had said an offer would have been issued by Tues this week - nope!

I've told my EA that I'm looking to remarket the property from the end of next week if no offer materialises (that will be week 9 since it was last marketed). Issue is that we stand to lose a property we are buying sadly if we have to walk away from this sale/remarket - and we'll lose the hefty costs we've paid too!

So, how are Halifax doing at the moment? Not sure the advisor is doing all they can to chase this to be honest.

opinions4u

Halifax mortgage processing is usually pretty smooth and fairly quick.

Complex cases, usually where insufficient documentation has been provided by the applicant, can be slow going.

There is nothing to stop you continuing to market your property to others while these people try to get their finance in place.

DVardysShadow

Hopejack wrote: »

Situation is they offered and we accepted on our property in early March, property was taken off the market as a condition of the offer. I was told their had their mortgage in hand - turns out it was just an AIP! Valuation was done the week after so mid March and we are still waiting for their mortgage offer!!

I agree that the delay is getting a bit too much. But please understand, no one is going to come to you with more of a mortgage offer than an acceptance in principle. AIP means that they are good for the money, the rest depends on the property being good as security for the loan. So by definition, you have to accept the buyer's offer before they get the survey done which makes their mortgage offer better than AIP.

Hopejack

Thanks - this is what I thought with the Halifax. I've heard it's normally quite OK.

I don't know for sure but have a feeling one of them is self employed! The underwriters apparently asked for some additional documentation which has been supplied and received but not looked at due to a 'backlog' of work...!?

My EA doesn't seem as keen to remarket the property - it was only on the market 2 weeks with this offer coming in. They've said we run the risk of our 'buyer' pulling out but I'm getting impatient especially as we were told they had their offer in place due to buying another property which was withdrawn from sale - so application had all been done. Turns out it hadn't! I think we are being reasonable giving it until the end of next week and then remarketing - the prob is the house we are wanting to buy, I know our offer will be 'downgraded' on that place as we will no longer be 'proceedable' in the EA's eyes.

I think 8 weeks for a mortgage offer is taking the biscuit to be honest and it's not like it's Abbey we are talking about

Hopejack

Crossed posts with you DVardy - you will see from my reply the reasons why they supposedly had a 'mortgage in place' albeit it was for a different property but the funds were there waiting supposedly

opinions4u

Hopejack wrote: »

I don't know for sure but have a feeling one of them is self employed! The underwriters apparently asked for some additional documentation which has been supplied and received but not looked at due to a 'backlog' of work...!?

I would think that they have reduced the number of Business Assessors in the last year or so. So if there has been a slight increase in application volumes with closer checking of marginal cases then this could cause a backlog.

My EA doesn't seem as keen to remarket the property

It costs them money, that's why.

I think we are being reasonable giving it until the end of next week and then remarketing

More than reasonable.

I think 8 weeks for a mortgage offer is taking the biscuit to be honest and it's not like it's Abbey we are talking about

Some self employed applicants don't have accounts available up front and these need to be pulled together after the mortgage process has started. Some are slow in providing the accounts because they fear being declined. Some accounts are presented in a complex way and need an underwriter to spend more time looking through them.

A combination of smallish deposit, self employment and the current market should make a lender be very careful before issuing a mortgage offer.

Fingers crossed you'll know for sure next week.

bacard1

I would make the buyers aware that you plan to remarket it. Give them say another 7 days, if they just saw it on the internet they would be offended. In the current market you do not want to offend any buyer, and you never know they might swap lender and get a offer, or it might get there advisor to put some pressure on the Halifax if there is a deadline

Hopejack

bacardi - it was always the intention to give them another week and let them know a few days before that if the offer isn't through by x time then we will remarket the property - it's only curteous to tell them and I'd hope someone would do the same to us. That is not to say we are pulling out of the sale but without a mortgage offer coming through they are not proceeable and until that time, we need to remarket - if they wish to walk away then I don't see them as serious buyers anyway. I agree about the current market but things are selling around here and 9 weeks off the market waiting for a mortg offer that isn't materialising could have cost us another buyer - the risk is that another buyer might not pay as much or may be in a chain, but on the flipside that buyer might not need such a high ltv mortgage and may have less hassle getting the credit as a result. It's a risk but it's better than my place standing empty waiting for an offer that might not materialise. I had a feeling that there would be issues with their mortg as soon as I heard they needed a 90% one!

It's very stressful as I don't want to lose the place we wish to buy but I can see that happening In the meantime, I just need to keep the other EA off my back as I know they'll be ringing next week for an 'update'...

bacard1

Yes 9 weeks off the market is a long time, and i would not like to be in your shoes. I hope all goes well and the buyers offer turns up next week. But i do think you need to put a deadline on it sooner rather than later, or it can quickly turn into 3 months off the market. You will have possible the best time off year (so lenders say) for selling your house.

Good luck

Hopejack

Just revisiting this to say my buyer did get their mortgage offer eventally - we hope to exchange and complete next week. Thanks for all your replies.

bacard1

That good news. Enjoy your new home m8