Halifax withdraw their signed mortgage offer just before contract exchange

silentfire

Hi,

I've viewed this forum a lot in the past. But this is my first post as I really need some help.

We have everything ready and just about to exchange the contract and Halifax telephoned me that they are going to withdraw their offer.

I will make the story simple.

Mortgage offer issued and signed.
All researches done.
both parties are happy to exchange the contract.

REASON: they don't lend if the owner has owned the property for less than 6 months. What a joke, I applied the mortgage through their adviser directly, and he never mentioned that once. The seller is big investor who buy portfolios and sell them. The EA already complete a couple of sales for them the other lenders have no problems at all.

I am starting to find another lender through and broker now and hope it will be quick. The seller is not happy about it and the flat is re-marketed. Is it possible to get some compensation from Halifax for survey and other cost as it is totally their fault and ruined my plan completely.

puregeordie

Hope this help, Post #9

I've heard of this, it is to do with money laundering - a lot of lenders are now not mortgaging properties where the current owner has had it less than 6 months.

So it's not uncommon.
https://forums.moneysavingexpert.com/discussion/2051367

Cheers.

GMS

Pretty standard unfortunately, the estate agents should make people aware of this prior to applying for a mortgage.

Has the flat been converted or simply 'done up'. If it has been a conversion then you may find issues as it could be classed as a new build.

How long has the developer owned it?

No compensation as their 'adviser' would not have checked the length of ownership. This is part of the conveyancing.

kingstreet

silentfire wrote: »

Hi,

I've viewed this forum a lot in the past. But this is my first post as I really need some help.

We have everything ready and just about to exchange the contract and Halifax telephoned me that they are going to withdraw their offer.

I will make the story simple.

Mortgage offer issued and signed.
All researches done.
both parties are happy to exchange the contract.

REASON: they don't lend if the owner has owned the property for less than 6 months. What a joke, I applied the mortgage through their adviser directly, and he never mentioned that once. The seller is big investor who buy portfolios and sell them. The EA already complete a couple of sales for them the other lenders have no problems at all.

I am starting to find another lender through and broker now and hope it will be quick. The seller is not happy about it and the flat is re-marketed. Is it possible to get some compensation from Halifax for survey and other cost as it is totally their fault and ruined my plan completely.

So you informed the Halifax representative at the outset the property had been owned for less than six months and he continued with the application?

silentfire

The owner has owned it for 3 month. On one hand, some other flat in the same portfolio are sold with other lenders with no problems of the 6 month ownership. e.g. Santander, Nationwide. On the other hand, if Halifax do have to follow this rule strictly, the adviser should mentioned it and I would check it before applying for the mortgage.

kingstreet

From Abbey/Santander criteria;-

If the property has been owned by the vendor for less than
six months, the application may be referred for investigation.
This could result in delays to completion or in some instances
the application being declined

Halifax;-

the current vendor must have owned the property for at least six months before we can accept an application to purchase that property

The_J

The estate agents should have told you this. It is a well known issue albeit very rare (hence the mortgage companies don't ask for it all the time).

silentfire

kingstreet wrote: »

From Abbey/Santander criteria;-



Halifax;-

What I understand is that Halifax should not accept my application in the first place. But I was applying through their adviser directly. They accept my application, got my money and did the survey, issued the offer, signed the offer. And three weeks later, when I was ready to exchange the contract, suddenly called me saying sorry. Does that sound all right?

kingstreet

Did you tell the Halifax representative the property had only been in the possession of the current owner for three months?

If you didn't, how did you expect him to know?

The issue has come up because the solicitor has now checked the Land Registry entry, as is normally the case at this time.

If the property has a metal roof, or is made of concrete, or has any other unusual feature, the lender needs to be told about it to be able to act accordingly.

The_J

Kingstreet is right, if you knew about it you would have to tell Halifax. If you did then they are clearly at fault.

If you didn't know then the estate agents are at fault for not bringing it to your attention and telling you it was important.

silentfire

They are the mortgage experts and they are the company who cares about it. But they never asked until everything is done. Then how should I know it could be a potential problem. If they did, I would definitely check the length of ownership before I apply.