Halifax mortgage offer retracted!? Help!

tigthepig

Hi everyone,

Despite having frequented the MSE forum in the past- this is our first post.

We have recently applied for a mortgage with Halifax to purchase a section 106 (affordable housing) property on a 'low-cost buy' basis (so not shared ownership) (our broker told us that Halifax are the only ones that would lend because of the 106). We've gone through all the stages from mortgage promise, mortgage in principle, paid for a property valuation and then even received a written mortgage offer- only to have the offer retracted (or words to that effect) three days later!:(:mad:

We are really distressed at this point as we haven't had any indication as to why this has happened and only actually found out from our conveyancer when we called them today!

Has anyone heard of this happening?

As I said we haven't been given a reason- and have only been told verbally that the broker has today(?) received an email from Halifax saying that this has happened. Our broker is attempting to find out whats going on but as yet we know nothing.

We were slightly tentative in applying for a mortgage in the first place as my partner's credit score is 'poor' (although toward the better end of that scale). But we have a 25% deposit, and were offered a mortgage of nearly double the amount we want to borrow- and our fully informed broker reassured us at every stage.

Is it likely the credit rating is the culprit or the 106? Are we likely to be given a reason?

Any feedback is really really appreciated- thanks!

kingstreet

I can't imagine it's you. You've passed the credit score, or you'd never have got the promise. It can only be a change concerning the property, but why it wasn't picked up between receipt of valuation and release for offer is odd.

You can only wait and see what your broker has to say. I used Halifax for several shared equity cases last year where no-one else would do them because the second charge was being signed by a subsidiary of a RSL, not the RSL itself. Nationwide wouldn't lend. Halifax lent on half the apartment block in the end.

Fingers crossed.

nancyo

The very same thing happened to me last year, although, the reason for halifax rejecting us was because my partner didnt have a full time contract, even though he had worked there for 18 months and we knew it was a stable position...

tigthepig

Hi Kingstreet,

Thank you for your quick response! Much appreciated.

We're partly hoping that the problem is down to the 106- so at least we could maybe purchase somewhere else if not here.

The development in question has been staged- a handful of properties having been built under one planning consent a year or so ago and the property we want being built under a newer planning application/consent (the one we want is the the first of the newer development to potentially have been sold). The 'older' properties are 75% mortgaged through Halifax (so were told by the broker). So I don't know if anything has changed in the newer planning application/106 agreement.

Certainly the time between valuation and receipt of offer was only a few days, which was a concern at the time. But like you say surely the checks should be made before the offer.

And we thought as the property is not shared ownership, but freehold at a reduced value (to be sold on at 20% below market value) that this would be less off-putting to a lender who may be concerned about the out-goings related to paying a mortgage and a rental fee.

Thanks again for your feedback- its really good to get another perspective.

tigthepig

Hi Nancyo- thank you too!

Our situ is slightly similar- again another factor. My partner has been on a 12 month contract- soon to be renewed (company policy) but this is also stable position. Again the broker knew about this from the outset and we were reassured it wasn't an issue.

Did Halifax give the reason for the retraction fairly promptly? Any luck re-applying or with any other lenders?

kingstreet

tigthepig wrote: »

Hi Nancyo- thank you too!

Our situ is slightly similar- again another factor. My partner has been on a 12 month contract- soon to be renewed (company policy) but this is also stable position. Again the broker knew about this from the outset and we were reassured it wasn't an issue.

Did Halifax give the reason for the retraction fairly promptly? Any luck re-applying or with any other lenders?

This may be the problem. Halifax criteria reads as follows;-

Short term, renewable, fixed and rolling contracts

These can be considered. 2 years remaining on contract proceed without referral, if less refer to intermediary sales centre.

so the application may have been approved, then the contract issue picked up for further investigation.

tigthepig

Thanks again for the response.

At the moment you're definitely the most informative person we've spoken to. Halifax wont tell the broker why the retraction has occurred or even tell us directly!

This is despite the broker having argued that we have a right to know due to freedom of info etc as its our data.

Are Halifax within their rights to retract an offer without giving a reason?

Its so frustrating- how can we attempt to address the problem or if we don't know what the problem is!

kingstreet

tigthepig wrote: »

Thanks again for the response.

At the moment you're definitely the most informative person we've spoken to. Halifax wont tell the broker why the retraction has occurred or even tell us directly!

This is despite the broker having argued that we have a right to know due to freedom of info etc as its our data.

Are Halifax within their rights to retract an offer without giving a reason?

Its so frustrating- how can we attempt to address the problem or if we don't know what the problem is!

To be fair, I'm only guessing and I could be miles out. If the contract situation was declared on the application I can't understand why it wasn't picked up at initial checking, rather than now.

You can make a subject access request under the Data Protection Act, but that will only get you a copy of the information they hold on you, not necessarily a link between your data and their decision-making process.

How do things currently stand? Is there an appeal, or is the case declined completely? Is your broker looking for a new lender?

jonathanmiller

Halifax can also reject cases if they have received third party information or indeed the case has been referred to their audit team. In these cases, they do not give the broker the reason behind the withdrawal but we only tend to see this mid process and not after offer.

I would ask the broker for a copy of the application to see if anything on the application conflicts with how you presented the case with particular attention to the contract situation

tigthepig

Having spoken to Halifax they said there is no way that the powers that be would let us know why this has happened, they even said its not that rare and they get several a week. They said there is no appeals process.

Our broker is currently looking into alternative lenders, I think Santander and Nationwide.

I think your both right in your advice that we ask the broker for a copy of the application.

Would you have any suggestions of lenders that lend on a 106?

With the value of the property being so low (not much over 100k) we may be able to afford a 50% deposit. If that would help!?

nancyo

Sorry I havent been on to reply, Halifax gave me the decision within a day or two of them having all the information, pay slips etc.
It can be very annoying, thankfully for us his work have taken him on a full contract now and we are in the process of buying again.

Our last (failed) sale went ugly, solicitor concluded the missives on the property without us having a mortgage in place and they knew this - but thankfully it was a new build and the builder sent us letters to threaten us with all sorts of costs, but the property sold again fairly quickly so we were ok! Put us off buying for a while to be honest!