Is a Mortgage Promise worth the paper it's written on?

Verora

For the last 3 months (yes 3 months) we've been trying to get a mortgage with the Halifax. Initially we provided all the proofs of income etc and because I'm self employed they would only base the Mortgage Promise on my husband's income.

His circumstances were leaving the Army within 3 months; putting a 20% deposit down and collecting his significant pension. This was all known by the Halifax when the Promise was issued.

Since then we've had email after email requesting already sent documents, we've put an offer in on a house, had the survey done as requested by Halifax for the underwriting etc etc and yet still more and more questions. It can take days to get hold of the advisor on the phone who can do nothing except take our case 'to someone else' for advice. I don't understand. Our circumstances have, if anything, improved as my husband has already got a contracting job (and yes with provable income) which is more than he had when the Promise was made.

We've paid money out on the basis of the Promise, made a promise to buy ourselves and now 3 weeks before exchange Halifax are still umming and ahhhing over a decision. In fact we were told today by the Advisor that she "didn't know where the amount calculated came from" on the Promise even though she was the one who issued it.

Can we force Halifax to honour their Promise? Or if not seek compensation on their premature advice to output money on buying? Or even at the very least demand an explanation as to why they've changed their mind? Do they have to explain anything at all or are we subject to the whim of the person in the local branch?

In a few weeks the MoD will start the eviction process (welcome to the end of a 28 year career!) and we are at a total loss as to what hoops to jump through next to get a mortgage.

Simon_gloster

Yes, not worth the paper its written on.

However you have had a val done, meaning a credit search has been performed. It sounds as though you mortgage is with the undewriters who 'can' over-ride the promise.

paulmapp8306

You cant MAKe them honour anything unfortunately.

I feel your pain - Im leaving after 24 years shortly. i have yet to find other work, and also have a 20% deposit. Were going through a buy but im 14 months away from my end date which better i guess.

TBH Id look at renting once you get your eviction notice. If the mortgage falls through (for whatever reason) youll have to do that anyway - so if it comes to that, renting short term should be manageable. the rent wont be much more (if anything) than the mortgage plus insurances etc so it would lend weight to further applications (that your managing paying rent similar to the mortgage payments).

holly_hobby

An AIP is generally based on public domain data re credit searches and that the income and status declared will be replicated and verified on submission of a full application.

However, all lenders will reserve the right to allow their underwriters to seek any further verification they feel is necessary, from the data and info delcared within the app, right up until completion takes place to be honest - so there is no basis to take any legal action or sue for costs at this stage.

However, I would say that once you have recd your offer you are on the home straight (if there is nothing to come out of the woodwork) - and can start the conveyencing process and other cost incurring activities.

I can understand your frustration, and sorry if this isn't what you wanted to hear.

Hopefully your offer will be issued shortly

Good luck

Holly

ACG

You cant make them lend you the money...its only an agreement in PRINCIPLE....you will see it has caveats attached - ie subject to ".....".

One reason i dont like using halifax is that their support from an advisor perspective is lacking in my opinion, most lenders have account managers you can harass if you want an answer or so you have someone to put their name next to a decision, you dont really get that with halifax.

Verora

The latest news is that the Halifax have changed their minds again (offered an unreserved apology to boot) and are prepared to underwrite the Mortgage Promise based solely on my husband's proof of income. The Advisor isn't able to process it till Friday so I'll keep a healthy dose of skepticism till then.

For info to others in a similar situation:
We've found the majority of employers are choosing the termed/rolling contract method of employing rather than permanent. As self-certification of income for mortgages was banned in 2011 - courtesy of a MoneySavingExpert Article "can-the-self-employed-still-get-a-mortgage".
I would strongly recommend if that's your situation you find a Mortgage Advisor that specifically deals with IT contracting clients. They will know how to present your case and more importantly deal with the right people within the well known mortgage lenders (e.g. Halifax) that understand the nature of the beast and accept proof of income such as a current contract, and not necessarily 2-3 years of Self Assessment/Company accounts which only reflect your PAYE earnings. I would not risk dealing with a local branch again.