Accepted mortgage in principle then declined mortgage with the Halifax

Carlos86

Hi everyone very new to this so excuse me if I bore the hell out of you

I have recently been declined a mortgage with Halifax after having a mortgage in principle done with them in 02/12 that was accepted.
I was in the process of buying my first home (new build) with my partner, things were great and looking good when we put our deposit of £500 down to reserve the plot until it was built to now be told by the supplied mortgage advisor that we have been declined and he wants to now check experian credit reports and we are very much worried If we will stilll be able to buy this property or not, now we have been declined by Halifax do I stand a chance of getting a mortgage elsewhere? Do these people have many sources to borrow from? Any feedback would be very much appreciated or if anyone can help that would be great.

Thank you

GMS

What was the reason for the decline?

Carlos86

I have no exact reason the mortgage advisor has asked for an experian report to check my credit file but still waiting on post.
I did have 2x default wich I also told Halifax about when I did the mortgage in principle in feb they were back in 2007 so I didn't think this would e a problem. Any ideas?

Thrugelmir

Lending underwriting has tightened this year as the financial crisis continues to impact.

Lenders can pick and choose their customers at the current time. As demand for mortgages exceeds supply.

GMS

At high loan to value it is probably down to the defaults.

Underwriter may have decided too risky.

ftb-btl

Are the defaults satisfied or outstanding? How old are they? Have you built up positive credit history since then i.e. by using a credit card / loan without fault in the mean time?

Dave_Ham

Carlos86 wrote: »

I have no exact reason the mortgage advisor has asked for an experian report to check my credit file but still waiting on post.
I did have 2x default wich I also told Halifax about when I did the mortgage in principle in feb they were back in 2007 so I didn't think this would e a problem. Any ideas?

This happens time and time again, unfortunately Halifax will not lend and certainly not at higher loan to values with defaults on the credit file.

Now the advisor would have known this and with no more products to offer, they just take a punt and it is not on..

Issue is compounded by the fact that at AIP stage, I understand they only check last 3 years and typically the most recent address and the remaining checks are completed at full application - makes it even worse in my opinion.

It will be the defaults and with a high loan to value, it is unlikely there will be another solution on this property for you.

Unless of course this is a joint application and the defaults were in one name and the other clean applicant (credit file wise) earns enough to achieve the mortgage in sole name..

Carlos86

The defaults were in 2007 and I have payed everything up to scratch since then, I have a car on credit that is all and I ran a good wage but still not food enough. Really does drive you up the wall. give up

Carlos86

Would a guarantor help in this situation or is that not an option with a mortgage?

Dave_Ham

Possibly would help, although impossible to tell until you have your Experian and Equifax reports in your hand (the £2 versions are fine)

Put them to someone who knows which way is up and they will quickly determine if there is a solution for you.

Good luck

Carlos86

Decline free yet another mortgage in proposal passed, do I stand a chance if I appeal ?