Halifax pull mortgage offer?

winslo

Hi

We had a decision in prinicipal from halifax for a mortgage for £170,000 based on us putting in £20,000 so a total property value of £190,000. We have been looking for a few weeks and found a property we liked, offerd and it has been accepted. We went to our broker and told him that the property price was £163,000 so would put in £16,300 as deposit and need a mortgage for £146,700. He told us becuase of the new amount he would need to do another mortgage in prinicpal. Today he called and said it had FAILED? Anyone know why this could be? All he has told us is, they said to put the application in anyway and would get back to him in 48 hours?

Any ideas?

Thanks

Richard

Dave_Ham

Hi,

Right first things first, get a copy of both of your credit files. Once you have these it should give a better picture.

Halifax will tell your broker whether it has failed credit score, or failed affordability and there is clearly a big difference.

Not going to infer any further until you have that basic information.

Halifax to be fair are usually quite a straight forward lender to deal with..

camper_1982

Because everytime they do a decision in principal they are stamping your credit file maybe. Im not sure but maybe thats why. Other than that im not sure why.

Dave_Ham

Just on a side note, be careful when using terms like pulled offer.

It sounds as if you had a decision in principle, sound advice as you went looking for a property, offered and accepted.

Bit strange here, as I would have just kept the same decision in principle and amended the amount on the full application (I think)

Nethertheless part of the full application process is more information submitted, documents (proof of income etc.) submitted and a valuation booked.

Whilst awaiting your valuation, the case is underwritten and then typically when the valuation comes back all being well the case gets offered.

This is then the formal mortgage offer the solicitors work with. This is the part that is formalised as an offer from Halifax..

All a bit strange though - as I said get credit reports, ask a couple more probing questions of the broker and see where we are.

Also, please ensure you manage the Estate Agent expectations and don't let them necessarily be aware of any issues at the moment although I suggest they are calling you 104 times a day checking why the valuation has not been booked yet..

kingstreet

camper_1982 wrote: »

Because everytime they do a decision in principal they are stamping your credit file maybe.

Not true. Halifax AIP is a soft footprint. That's one of the reasons you see Halifax cases rejected after a pass at AIP stage.

In recent months we've had several AIP passes which became Full App fails due to defaults which didn't show up earlier.

Can't see what might cause a Halifax AIP fail after a recent AIP pass. I agree with DH. I don't see why a new AIP would be necessary as a reduction in borrowing was required. You build the full application from the original AIP submission and you wouldn't get a decision until all the information is keyed. Are you sure this wasn't a decision on a full application?

they said to put the application in anyway

Puzzling...

winslo

Hi

I was thinking the same thing, why would he need to put in for another decision in prinicipal? The letter says max borrowing up to £170k based on a 10% deposit. I would have thought on the application he would have just amended the amount of borrowing?

I haven't spoke to him as yet, my wife did this morning when she went to give him our proofs. Nothings changed at our end, credit file is the same, no outstanding debts anywhere. We did have a ccj in 2007 which was satisifed a few months after, but our mortgage advisor knew about this from day one.

Im puzzled!

Dave_Ham

How odd?

Only thing I could guess at (and assuming you have only ever been at AIP stage) is that he put a middle name in or dropped a middle name, or put an old address on the 2nd aip if doing again.

Or 2nd time around he declared this, although still would not expect this to make a material difference at this stage.

I used to use Halifax quite a bit, so know their systems fairly well.

Any new nuggets of information let us know and we can see..

Incidentally, they hardly ever overturn a fail to a pass so putting a full application in with no more than hope is not necessarily a good call - in my opinion...

GemBlueTopaz1984

Hi Op,

Not sure if this would be remotely relevant, but when you did your AIP you were putting 20K down which was more than a 10% deposit, so is it possible that when you went for a full app you didn't meet 90% ltv criteria.

winslo

Hi yes we are only at the AIP stage, it was just finding a house and then moving forward with it once an offer was accepted?

Ive emailed our adviser to see if can shed any more light on this. Will post up what he comes back with

thanks

richard

kingstreet

GemBlueTopaz1984 wrote: »

Hi Op,

Not sure if this would be remotely relevant, but when you did your AIP you were putting 20K down which was more than a 10% deposit, so is it possible that when you went for a full app you didn't meet 90% ltv criteria.

Not a bad point that.

The lending has increased from 89.4% to 90%. That may have made a difference.

I've been thinking about this. If you get an AIP fail, does the system allow you to continue to full application? I thought you could only move forwards if the AIP passed first?

It's not beyond the realms of possibility this is a Full App fail and the CCJ has now been picked up after being missed by the "soft footprint."

There is nowhere in the Halifax system - AIP or full application to disclose adverse credit. The system finds it and accepts it or rejects it without disclosure required by the borrower.

Dave_Ham

Good points raised..

I thought there was a section that said "have you missed payments etc." and they would expect you to declare it here (but agreed only on the full application) and suspect you are correct and this may be a full application fail - communicated badly.