Halifax Mortgage Promise (Scam?)

mrjam

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dunstonh

Surely this is daylight robbery?

No. The mortgage promise comes with caveats.

Nothing whatsoever has changed in the 10 days since applying and receiving the mortgage offer/promise (i use the word promise loosely) and receiving this letter, other than us being just shy of £1,300 lighter in the pocket.

If that is the case then make a formal complaint.

However, just so you are aware, the caveats typically are that once infromation is supplied, if anything turns out to be different (lower income, higher expenditure/debts than declared etc) then this will effectively void the mortgage promise. It is also subject to current lending criteria. So, an agreement in the past may no longer be valid afterwards (it is date of application that matters).

The most common reason for an agreement in principle to then lead to a failure is undisclosed information. What reason have they given for rejection?

kingstreet

I don't understand this. There is no way of paying fees at the agreement in principle stage. The Halifax system only does a "soft footprint" check so it is possible to get a different result from an AIP than from a full application.

This is the way the system works, as I understand it.

Apply for agreement in principle - granted.

Find property, make offer and agree price.

Return to Halifax, make full mortgage application. System returns accept, refer or decline decision.

Accept decision brings up fee payment page which collects card details for payment of valuation fee and arrangement fee (if latter paid upfront).

Application processed, documentation (if any) requested and surveyor instructed. Case checked on receipt, offer issued.

Now it's possible there may be some variation between the intermediary system and that used in a branch but I've never heard of fees being collected on anything but an "accept" decision at full application. Nor have I ever heard of Halifax collecting solicitor's fees.

Maybe one of the others can say what might have happened here, but this is the first such case I've come across in nearly 28 years and in 5,000 posts I've made on here...

mrjam

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mrjam

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justjohn

Its a long shot but can you ask to speak to the underwriter?

Sometime this is not possible, But i have managed it before.

Is the valuation and survey ok?
Sounds like electronic records have come up clean however its been flagged for the underwriter too look at.

Like another poster has said i have never heard off all these fee's being taken before the mortgage has been rubber stamped??

maninthestreet

If no valuation/survey has been carried out, ask (demand) that the money for this is returned. IF the solicitors have not performed any work for you, ask (demand) that they refund the money to you.

kingstreet

Was there a gap between the mortgage promise and the full application, or did this all happen on the same day?

So you actually paid the valuation/survey fee to Halifax and was the case declined before this was carried out or did they actually get the valuer's report back?

Then you paid a fee to a firm of solicitors again before they carried out any work on your behalf? Have you spoken to the solicitor about the fees you've paid and the refund policy?

mrjam

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kingstreet

Ok. Thanks for the clarification.

You should be entitled to a refund of the valuation/survey fee if the inspection was not carried out before the case was declined. I suggest you formally request the return of this payment as soon as possible.

If this is not forthcoming, or you are fobbed off at the branch, escalate the issue further up the food chain.

On the solicitor issue, this is hogwash. I don't know of a single solicitor collecting up-front fees. I know of plenty asking for a deposit to cover searches, but that's normally £200 to £300 at most.

Before you ask for the return of your money, ask them if they intend to represent you if you obtain your mortgage elsewhere. I assume they will be happy to do so. I'm going to PM a solicitor on the Home Buying Board to see what he thinks and how you should proceed on this issue if not satisfied.

mrjam

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