Should i complain?

hoponhiggo

In november my wife and i went into Halifax on the high street and asked for a mortgage. We recieved an AIP and started to look at houses. After seeing the house we wanted and having an offer accepted we went back into the branch in december to complete the application. The mortgage was refused. We failed the credit check. We went through multiple options with the halifax advisor but nothing changed.

With our tails between are legs we went straight to the estate agents and told them that we feel like idiots, but we cant get the mortgage. The estate agent recommded that we talk to their broker (as they would).

Their broker had a quick look over our credit reports and finances etc and was pretty shocked that the mortgage had declined by halifax. He stated that he was once employed as a mortagage underwriter and knew the halifax process very well and could see no reason why the application would be refused. He asked if he could try and put it through on his system.

Everything went through staright away, less than 3 hours after it was refused in the halifax branch. We had an offer within 10 days and exchanged contracts yesterday.

Because the mortage has gone through the broker, we have had to pay £300 arrangement fees and also lost out on the £1000 cashback offer for first time buyers, meaning that technically we are £1300 down on what we would have been if the application was succesfull in the branch.

Does anybody have any thoughts on this? I feel like going into the branch and kicking up a right stink!

Dan-Dan

Isnt this why Brokers exist in the first place ?

Dave_Ham

I would not be kicking up a stink just yet.

Have you considered that the Estate Agent broker may have pulled a naughty and manipulated the system?

If so, this could unravel into a nasty mess.

Good luck

hoponhiggo

Dave_Ham wrote: »

Have you considered that the Estate Agent broker may have pulled a naughty and manipulated the system?

If so, this could unravel into a nasty mess.

Good luck

I did consider this yes, which is why ive not been in and kicked off already.

When you say it could unravel into a nasty mess, for who? Me or the broker?

Once the mortgage has started and we are in the house, what can happen?

kingstreet

Have you got a mortgage offer in your hand?

If not, don't count your chickens. If the issue seen by the branch is picked up at underwriting stage, you may find yourself declined again.

Is it possible someone with the same surname and initial has adverse credit data at one of your previous addresses?

The Halifax MP is a soft search and is rather unreliable. It is not until full application that a proper credit search is done and at that time, adverse credit information from previous addresses becomes visible.

We regularly see threads on here from those who believed their mortgage promise was as reliable as another lender's agreement in principle. It isn't.

hoponhiggo

Nope, we, and our solicitor has had an official mortgage offer. Contracts have been exchanged and completion set for 18th.

My wife does have a four year old settled default for about £300 on her file tho, which is why we think it was refused in the branch.

Just dont understand why it would go through a few hours later through the broker.

Unless one of the two has submitted incorrect information

dunstonh

When you say it could unravel into a nasty mess, for who? Me or the broker?

Both potentially as you put your name and signatures to whatever is put forward to the lender

Once the mortgage has started and we are in the house, what can happen?

If you have not manipulated anything then nothing. If you have then they can add you to the fraud register and start repossession if they really wanted to. That is why you see so few people who perhaps have been encouraged to play the system not complain because they are equally responsible.

Were you pushing limits on your borrowing (say like wanting to borrow more than the traditional levels)? Has there been any exaggeration in the figures or things left off (like credit cards/loans)?

My wife does have a four year old settled default for about £300 on her file tho, which is why we think it was refused in the branch.

Just dont understand why it would go through a few hours later through the broker.

A four year old default is a big negative. Did you disclose it for the decision in principle or did they find it when the application was made? Branches have different discretions. Even staff at the same branches do. I used to work for a bank which had three branches under the same logo offering the same mortgage range and one branch could offer lending criteria that the other two could not. Brokers often have access to underwriters and can push a decision that a bank staff member cannot.

Dave_Ham

Contracts have been exchanged, therefore it will be a nasty mess all round.

If there is a reason why you should be declined and now are not, think carefully.

I do not know how Halifax would treat this post completion, but is it really worth £1,300

If your case is squeaky clean and if not you will know what I mean, complain post completion.

Halifax branch may have keyed it incorrectly and you should be entitled to the cashback etc.

If you are a contract worker, temporary contract worker, old adverse data recorded etc. etc. and the broker has keyed incorrectly to achieve what you want to achieve whilst not right at all; why would you create?

hoponhiggo

As far as we know, the application is squeaky clean. We made all partys aware of the default at every stage possible, as well as disclosed all of our loans and finance etc. We were worried ourselves that it would come back an bite us on the !!! before the mortgage offer was received.

I think we borrowed within our means - We have a 46k a year income, and put down a £22,500 (15%) deposit on a £150,000 house.

betmunch

Just want to check, the broker did place the application with Halifax as well?

If he used a different lender then a) nothing to worry about, and b) no reason to complain.

If I have missed where you confirm where the broker placed the case then sorry for my ignorance, I did skim some of this!

hoponhiggo

betmunch wrote: »

Just want to check, the broker did place the application with Halifax as well?

Yes. Our mortage offer is with Halifax