Mortgage application not proceeding

deswal_sanjay

Dear friends,
I applied for mortgage for new build property with Halifax on 5th Jan. After a week or so, I was asked to provide my solicitor details, who had to actually submit some supporting documentation related to new build property for mortgage application processing.

Solicitor took about three weeks in collecting the required documentation from seller Solicitor and submit back to the lender on 10th Feb. On Friday 10th Feb, my mortgage adviser emailed me that he has received 90% of the documentation, just the two are pending which are under progress by my Solicitor.

On Saturday (exactly after 30 days of the mortgage app), I received a letter (sent on 6th Feb) from Halifax customer care assistance stating that my mortgage application is not proceeding because I failed to met the qualifying criteria. I'm really shocked.

This is a bit confusing because,
1. My mortgage adviser emailed me on 10th Feb that there are still two documentation pending from my Solicitor and he didn't mention anything about mortgage application not proceeding etc.
2. Letter came from customer service assistant after exactly 30 days of the application and not either from Mortgage adviser or underwriters. ( think that's the max response time for high street bank building society ? )
3. Letter doesn't stat that application has been rejected or declined, it just says "Application not proceeding"

Did the application not proceed because of missing required documentation ?

Is it a miscommunication mistake by the Bank as my mortgage adviser is well aware of the pending documentation ?

Please would some one shed some light on this issue ?

Thanks a lot for your help.

Best Wishes,
Sanjay

GMS

Are you a first time buyer?

Was the property a house or flat?

What Loan to Value did you apply for?

deswal_sanjay

Yes.
House.
80%

kingstreet

You're going to have to get this from the horse's mouth. If you applied direct, ask Halifax. If you applied through a broker, ask the broker.

If you're unable to tell us the reason for the "decline", we're unable to suggest a way of solving the problem.

Letter came from customer service assistant after exactly 30 days of the application and not either from Mortgage adviser or underwriters. ( think that's the max response time for high street bank building society ? )

Fiction. A lender can take as long as it likes to underwrite an application.

deswal_sanjay

Thanks much for the quick reply.
sure I'm gona ask tomorrow morning.

Letter stats that, "Mortgage application not proceeding". They didn't use word "declined" or "rejected" any where. As far as I understand, a decline letter should stat the "Mortgage Declined or Rejected" with possible reason.
do you think its decline letter ?
More over, is customer service assistant authorized to write and sign such letters ?

Thrugelmir

deswal_sanjay wrote: »

As far as I understand, a decline letter should stat the "Mortgage Declined or Rejected" with possible reason.

There's no requirement to give any reason.

deswal_sanjay

Thanks for your post.
I still doubt whether its rejection or just some mis communication because my Mortgage adviser did not mention any thing in the email sent on Friday. However the letter was sent on 6th Feb ( 4 days before ). If my application has been declined ( which I don't think so ), I'm gona ask for issuing a letter with reason because high street bank building societies are legally obliged to do same.

Now my question is, would mortgage adviser not know about the application declined for four days ?
Would decline impact my credit score ?

GMS

Lenders are not obliged to give a reason for decline.

Your credit file will show an application not a decline. this could lower your credit score.

There are any number of reasons for a lender not to lend.

What is your employment status?
Do you have any adverse credit?
Do you as an applicant meet their criteria? Age, nationality, no criminal convictions?
Does the property fit their criteria? Is it standard construction i.e brick walls and slate/tile roof?
Are you providing the deposit from own funds? Any builder deposit?

deswal_sanjay

~permanent employee, IT consultant
~Never late payment or default.
~It was checked very first day when mortgage was pre approved, everything is as per their standard criteria.
~Its a new built and Bank has requested all supporting documents. My Solicitor has provided all those, except two which are under progress (fitting etc). This was the main reason my application was on hold since 5th Jan. My Mortgage adviser (Halifax) confirmed the receipt of the documentation on Friday and he did not mention any thing about the letter I received.
~Yes, my own fund, no deposit from builder.

deswal_sanjay

between my main questions were
1. what does "Mortgage application not proceeding" mean ?
2. Customer Service Assistant authorized to issue such letters ?

Dave_Ham

Hi there,

This letter is an automated letter and hence why it is just signed as a customer service assistant.

I believe and it could be an error that somebody has NPR'd your case.

This letter is the confirmation and not a decline. Either your mortgage advisor, someone in the service centre or central risk would have closed the case as not proceeding.

It can easily be undone if an error.

Obviously you are looking for an answer on this forum and dont want to wait till tomorrow, I get that. Unfortunately no-one will be able to give you an answer although it will take your mortgage advisor 5 minutes to find out.

Good luck