Appeal against my mortgage rejection?

hettifield

Hi, this is my first time on here, I really need some advice.

Okay, my and my partner are first time buyers, my partner is self employed with only 2 years books so our mortgage advisor advised we get a mortgage on my income alone. We got a mortgage in princ from the Halifax for £91k. We searched around and found a part buy part rent property which we loved. We put an offer in for £70k which they excepted. Great! So we went through all the usual, insurance, valuations etc.. I hadnt been able to get my Experian credit report straight away so at this point I was still waiting to see it, however my mortgage advisor said we'd 'definatly' got the mortgage from Halifax so we paid £900 for the broker and evaluation fees. a few days later we got a call saying the bank had now declined our application due to undisclosed adverse credit on my report. i eventually got my credit report through and found this was from an mobile phone contract from two years ago which was settled ages ago. My mortgage advisor said he is going to appeal the decision for us.... has anyone every had a mortgage app approved after an appeal? How long do they normally take to make a decision?

Sorry for the life story, thats just the short version

please help!!! xx:(

hettifield

i should also mention we are asking for 50k mortgage as we have 20k deposit. thanks

Thrugelmir

however my mortgage advisor said we'd 'definatly' got the mortgage from Halifax so we paid £900 for the broker and evaluation fees

Over confidence on part of your broker. Until you receive a formal mortgage offer then nothing is guaranteed.

With underwriting criteria becoming increasingly tighter. A default is a default irrespective of the amount. In this modern age of direct debits and phone payment services there's no reason for late payment.

Hopefully though your broker will get your case reviewed successfully. So a lesson to bear in mind for the future.

kingstreet

Whatever you score with the Halifax at AIP is automatically lowered by going for shared equity or shared ownership on full application.

This could take a C pass to a fail.

It may be worth asking your broker to ask what happens if the SE/SO is taken off as it may make a difference. The new business centre we deal with will often help us to tweek different issues, like the mortgage term, to see if it increases the amount available or improves the score.

hettifield

Thank you.. Is the appeal process with Halifax worth it or is it a pointless process? The mortgage repayments would be just under £300, £200 less than what we pay in rent at the moment, surely they could see from bank statements/pay slips that I am able to afford this.. 50k mortgage is not alot in comparison to other people i know who were 'lucky' enough to get 100% mortgages..

charleyroo

OP I agree that 50k is tiny compared to some of the mortgages we see/hear about!

I was told that they don't really look at what you pay out in rent now. Although, obviously they scour your bank statements to see how you conduct your finances generally.

Haven't got a lot of advice but just wanted to wish you good luck, was in a similar situation of applying in my name only and thus having no other options if I got turned down, and it's a very nerve wracking and awful time

ps I got my SE mortgage with Nationwide at a good rate and I know Natwest work with the government SO/SE schemes so worst case scenario there are other banks to go to!

kingstreet

We can't tell you how close to pass or fail your application was on the day of entry, so it's practically impossible to speculate accurately what the outcome might be. The appeal process is free, so you might as well go through it, as you have nothing to lose.

Lenders do not calculate or even examine the difference between your current housing costs and those should your application be successful. A lender is simply interested in getting its money back as quickly and as easily as possible.

Brokers guaranteeing a Halifax mortgage promise are going to find themselves with problems. We are finding more and more cases on here where those with such a "guarantee" are finding themselves declined at full application because of the "soft footprint" being left by the Halifax system not actually looking at the applicant's credit history at the outset.

I would only be happy with a Halifax mortgage promise now if I had copies of all three credit files and had verified income and status with at least three months payslips and bank statements. Even then I'd be cautious if shared ownership or shared equity was involved.

hettifield

okay, thanks for the advice. I guess I'll have to sit tight until my broker gets back to me and tells me the outcome. any ideas how long the appeal process takes?

Also, the Sold sign has been but up on the house we are going for, will this stay up until the appeal process is completed or will the house go back on the market?

charleyroo

hettifield wrote: »

Also, the Sold sign has been but up on the house we are going for, will this stay up until the appeal process is completed or will the house go back on the market?

Not sure on that one - the Sold sign never went up on the house we bought lol!

Are the estate agents aware of the issues you're having? If so, ring them and ask. Otherwise you could check Rightmove and see if it's on there... or be a bit sneaky and ring as a prospective buyer and enquire if the house is still on the market ... that could open a can of worms though....

Charl

kingstreet

hettifield wrote: »

any ideas how long the appeal process takes?

Sorry to say it takes as long as it takes.

Also, the Sold sign has been but up on the house we are going for, will this stay up until the appeal process is completed or will the house go back on the market?

Unless you tell them you have a problem, I imagine it will stay up.