Halifax Not Allowing us to carry over Mortgage...

RichardMc

First time poster... so please be gentle!

We approached Halifax about 3.5 yrs into a 5 yr fixed deal, to ask if we could move house. They advised (verbally) (twice) that this would not present a problem. When I applied for the mortgage originally I had notified them that we (my wife and I) were self employed. On starting the conversation about moving house, there was not a word about any problem with moving.

We therefore put the house on the market, and proceeded to get going with the sale. After a long intermission, we found a purchaser. We then hurried around to find a property, agreed a price, and returned to the Halifax.

At this point Halilfax indicated that we would need to have a valuation undertaken. No problem we thought - as the new mortgage amount is the same as the old amount, and we have been told that it is OK to 'carry across' our mortgage.

This is where problems began - when Halifax actually clarified the process as not being carrying across, but moreover being a process of closing and 'reapplying' for a new mortgage.

Being Self employed, at this point I began to feel nervous, due to tightened lending rules, and suspected something could go awry. Anyway - the valuation had been paid for, and came back fine.

Then around 2 weeks later, after I had promptly returned all requested paperwork, I was informed that Halifax would not be able to extend me a new mortgage.

In effect this means that I now have two choices - 1. Don't move 2. Pay the hefty redemption fees

I am extremely dissatisfied with Halifax and their shambolic process - as they were aware in the first place that I was elf employed - and I would reason that they should have in some way indicated - prior to engaging in the stressful process of embarking on a family house move - that there was a possibility of not being able to move.

On the contrary Halifax positively encouraged us into the house move, and constantly pursued us once we had indicated that we were considering moving. They also positively assured us that it would be no problem.

Firstly I am hoping to get my valuation fee refunded. Secondly I would like to know how I can proceed against Halifax for its misleading process and advice.

HELP! Halifax need sorting out.

Senior_Paper_Monitor

Halifax are not my favourite lender and have been involved in supporting more client complaints with them than any other.

BUT, they are entitled to apply their current criteria in assessing permission to port. I suspect any complaint will fall on stony ground !

Thrugelmir

This is where problems began - when Halifax actually clarified the process as not being carrying across, but moreover being a process of closing and 'reapplying' for a new mortgage.

This is standard practice and always has been. As the mortgage is the charge against the property to secure the loan.

Being Self employed, at this point I began to feel nervous, due to tightened lending rules, and suspected something could go awry

The mortgage market has tightened up considerably since last Spring. There is never a guarantee that the rules regarding lending criteria won't change.

I am extremely dissatisfied with Halifax and their shambolic process - as they were aware in the first place that I was elf employed - and I would reason that they should have in some way indicated - prior to engaging in the stressful process of embarking on a family house move - that there was a possibility of not being able to move.

There is nothing in your post to suggest that your self employment in itself was an issue. Without far more detail difficult to comment. Many people with steady incomes are being declined for the smallest reason. Lenders can choose their customers and restrict their risk as they feel fit.

opinions4u

Firstly I am hoping to get my valuation fee refunded.

Before you go anywhere, you need to establish the reason the mortgage was declined. For them to value the property implies that you passed their credit score, so it is likely that there is something else in their underwriting that has generated the decline decision.

If this is self employment alone, and you fell outside their standard criteria at the time of paying the survey money, then I think you have a case to argue that they should have satisfied themselves around all aspects of this before spending your valuation fee. If it's something else, then it depends on the specifics.

So please be more specific about why you've been declined. Halifax lend to thousands of self employed people. Tell us exactly why they won't lend to you. Have you appealed their decision?

Secondly I would like to know how I can proceed against Halifax for its misleading process and advice.

Until they have all the details of an application in front of them, they won't know what the outcome is going to be. You wanted to move. Halifax and a portable product were always going to be your first call. I don't think there's anything worth pursuing here.

when Halifax actually clarified the process as not being carrying across, but moreover being a process of closing and 'reapplying' for a new mortgage.

As a mortgage is specific to a property, this is exactly right.

RichardMc

Is there not something here about taking the valuation fee under false pretences. I was informed by Halifax that this was a straightfoward transaction - to move the mortgage across. This is only backed up by the terminology around 'portable' mortgages - which is extremely misleading.

My main gripe here is with the communications coming from Halifax - not whether what they are doing is correct. Of course (I now understand) they are entitled to re-assess my suitability for a mortgage. Of course they are entitled to refuse me a mortgage if they deem I am high risk. But I do not consider they are entitled to mislead me, and to suggest that I can move, to draw me into the process, and then to tell me actually that I can't move. This is where my contention with Halifax lies.

I shall in due course clarify my position with regard to exactly why the application has been turned down...

Incyder

The main problem is that when you took out the 5 year fixed 3.5 yrs ago that would have been mid 2007. Great times for Britains most frivolous lender, and all lenders.
They at that time would have lent to the self employed, the employed, self certs, one legged ducks, tramps with a hatfull of pennies, anyone.

Hence the mighty fall from grace that even brought Lloyds down when the true value of their debt was uncovered. (shame on Lloyds for non due diligence on that)

Anyway, those good old days are long gone. The lending criteria has tightened up beyond belief now. I also suspect that behind the scenes Lloyds and the govt would like to see many of the more risky mortgages settled so cash goes back into the coffers to repay the govt back for the 43% stake they have in Lloyds.

What the Halifax would like you to do, is sell up and pay them back, then go away quietly.
But they won't say so, and it's only my opinion.

If you had a whacking great deposit or huge equity lump to move to a new mortgage they would still want to be your friend. Lets say the house you wanted to buy cost 150k and you had 50k you would probably be fine.

I'm sure that all lenders are still expecting house values to fall quite a bit more yet. So the huge deposit gives them protection against loss should you end up being repossesed.

Conrad

RichardMc wrote: »

Is there not something here about taking the valuation fee under false pretences. I was informed by Halifax that this was a straightfoward transaction - to move the mortgage across. This is only backed up by the terminology around 'portable' mortgages - which is extremely misleading.

My main gripe here is with the communications coming from Halifax - not whether what they are doing is correct. Of course (I now understand) they are entitled to re-assess my suitability for a mortgage. Of course they are entitled to refuse me a mortgage if they deem I am high risk. But I do not consider they are entitled to mislead me, and to suggest that I can move, to draw me into the process, and then to tell me actually that I can't move. This is where my contention with Halifax lies.

I shall in due course clarify my position with regard to exactly why the application has been turned down...

I get clients comming to me all the time with this problem. The issue is your typical call centre person simply isn't able to deal with any client that is outside thier confines and this coupled with lack of experience often means they do not ellicit enough info up front to be able to give you an informed decision as to the likelyhood of sucess.

Under TCF (treating customers fairly) you imo are covered and as such may be able to claim back costs.

In particular the 6 core TCF Principles includes 'OUTCOME 1 - customers can be confident they are dealing with firms where the fair treatment of customers is CENTRAL to the corporate culture'.

But, it never is. The Directors are too far removed from the front line to understand this though, so you need to say to the compliance officer at Halifax that thier systems are supposed to lead to TCF outcomes, but as the Directors have not stress tested the systems appropriately, bad outcomes such as mine result, whereas had a sufficiently robust vetting and q and a proicess been in place, Halifax will have known UP FRONT my application would fail'.

As a broker myself I think this will work - use special delivery post and insist only on talking to the compliance officer, not front line bods.

RichardMc

Well my complaint is in progress now, so we shall see what they say. Turns out First Direct, my bank, seem to be prepared to lend to us... as one poster has said - it clearly seems to be that Halifax are clearing out their dirty laundry... why should I have to pay for their original imcompetence? Why should I be left with wasted time, and money because they can't inform me correctly - nor can they communicate correctly with me over the change in their lending criteria.

Surely in a properly functioning organisation treating customers with respect, they would communicate this change in lending riteria up front - rather than waiting until we had entered with both feet fully into the process of moving house....

Once again - it seems the banks can't lose.... they can rack up huge losses, and then they can re-coup it from unsuspecting borrowers... rubbish...

opinions4u

I shall in due course clarify my position with regard to exactly why the application has been turned down...

We're waiting!

(It's relevant to letting you know what level of justification your rant has)