Halifax Mortgage Rejected - Any point in reapplying or appealing?

satishtn

That would suggest that the income allowed for the mortgage has been significantly changed on the system. Clarity on what numbers are being used is the starting point. Not what you've submitted, but what's been treated as income when they've typed it in.

I suspect the same. I think the system has taken in wrong data and calculated my eligibility based on that wrong information. For the last two years my total income after tax has been £ 30k and £29k respectively. I am self-employed so PBT is 20% higher (roughly). However the business has been good this year and in first 4 months the take-home figure is £17.5K. So,

- Can I question Halifax on the exact figures that was entered? Will they entertain my question at all?

Halifax credit scoring is automated. Shared ownerships will also be referred to an underwriter 100% of the time.

How do you mean 'automated'? Automated or not won't it leave a foot-print on my credit report if it's being done? What is a soft-print? Does Halifax do this soft-print thingy?

I susepct they've disallowed certain elements of your income. Rightly or wrongly.

Sounds like it. My broker and I are on it. But because of the OT glitch we won't get anywhere for the next couple of days i think; and that is frustrating.

Dave_Ham

Anyone else want to take a punt on them putting 2900 instead of 29000 and now blaming IT??

Simon_gloster

Satish,

Is the £29 and £30k your net profits confirmed via HMRC?

Halifax will softly score you then give you quote on the first interview. Once your happy and have found a property, val fee taken and hard footprint left.

I found our that LBG are going through massive system changes for direc and broker business ie all on one platform soon.

As much as I trust the info you have declared, get a copy of your app for the £18K loan. If your net profits have been keyed correctly, think again.

Don't forget also Halifax have a detailed way in which SO income is used. Inceasing profits = Ave of last 3 years. Any decrease in profit they will take the worst year.

Good luck.

satishtn

Well, I have more news and it doesn't feel too good to be honest.

On the IT glitch: my broker managed to reapply through the intermediary system yesterday but had to apply for a mortgage of £0 to get my application into the system. For some reason he couldn't convert a AIP to a full application without bringing the amount down to £0. But this enabled the Halifax manager to see the application and told him it 'could' be a technical glitch and that IT are looking into it.

And my credit expert account is showing Halifax's footprint now. In fact it had knocked 6 points off my score (but still very healthy). So, I don't know how Halifax will do another credit check! But why didn't the foot-print show up before? It was because the address in my credit expert account did not match the electoral roll address. It was changed yesterday. Will this in anyway affect my chances?

@ simon gloster

£29K and £30K are figures from my accounts (countersigned by my accountant) - they're an accumulation of share dividends and director salary i.e. my net receivables from the business. My issue is the same data is used to give an AIP (with all the rise and dip in the profits); so do they use a different calculator for AIP and offer? I think not.

I do know about the system change they're doing... I am not sure how much it affects applications, but it's worrying that two things have happened: my application was accepted only with £0 as mortgage required and a hard foot-print has been left in my credit score.

I am not holding my breath. It looks like a lost cause to me... let's see.

Dave_Ham

Right, maybe I am losing the plot here but I used the Halifax system yesterday and had no issues at all.

It gave me an AIP for what I expected, then an Application for the same amount, then I submitted for valuation and got confirmation from their systems that all was well.

I also did a product transfer for Halifax yesterday...

I am confused... and not really fair on the OP

satishtn

@ Dave Ham

No sure what OP is but the only reason I could think why the system caused this issue was because of my first direct application. May be the system couldn't process a reapplication from the intermediary system.

Dave_Ham

The system does not like a couple of applications from different channels granted, but still do not get the whole situation. It must just be error after error..

What has your broker said now?

Without seeing the case it is hard to know what to suggest. Only your broker and the advisor in the branch can change this or make this right..

opinions4u

This has gone wrong somewhere between adviser in branch and back office underwriter.

Something has been keyed somewhere that has created this output. I don't think it's an IT fault. I'm fairly sure it's a keying error.

Direct and intermediary applications have to be keyed independently and will generate different searches. I don't recommend this approach.

satishtn

@ Dave Ham

The broker has spoken to the AM who has spoken to the processing manager; According to my broker, they "cannot see any issues" and the manager "cannot understand why the offer had reduced from £105K previously to £0".

I have completely cut the adviser off this now. She has been sympathetic but has very clearly stated she can't help me any more. So I am dealing only with the broker. My broker says that the "manager is chasing for a speedier turn around but 48 hours is the stated timescale". So I wont know anything till I hear from my broker.

@ opinions4u

My broker and I agreed upon honesty as our policy. So he spoke to the Area Manager before reapplying and getting an AIP. According to my broker, the manager had "seen case’s declined directly or offered substantially lower mortgages" and that a lot of this is "down to how the application is presented in the application system."

So we are not hiding anything from Halifax. In fact we don't want to process two parallel applications but the system might take it otherwise.

I think the operations may have to manually check the direct application and see if they have to cancel it.

Dave_Ham

I am sorry you are experiencing this.

Call the direct Halifax advisor and ask her to NPR the case. This means she can mark it as not proceeding and it takes about 30 seconds to do it.

This still does not add up, sorry.

By that I totally believe what you are saying, just cannot believe you are being told the truth. There is no merit in you trying to obtain another solution as you need to rely upon your broker being able to resolve this - would be putting more pressure on them though as I think they are buying time for something as this just is not typical of the Halifax process.