Help to buy - new homes mortgage helpline -beware!!!

Sophaloaf23

Hi All,

Having viewed some of the posts on here lately, I really wish I had checked out the forum and read about these cowboys long ago!

We found a beautiful new-build home through a well-known developer and, as first time buyers, they strongly recommended we speak to the New Homes Mortgage Helpline.

We were amazed at the speed with which things picked up - a week after making basic enquiries about the property, we had an 'agreement in principle'. The girl at New Homes advised us that this was on the basis of full credit checks and she advised us to put down the £1000 reservation fee. We were amazed... although I'm full time employed, I'm still a part time student and still paying off university debts. To make matters worse, I made a very stupid decision in the new year to take out a couple of payday loans. It still causes me embarassment now, to even mention it. In any event, they were both paid back, in full and on time. These obviously show on my credit reports but I was foolish to even think that they wouldn't cause any harm. Additionally, my partner is self-employed, which appears to cause some issues for lenders.

Soon enough, they sent round an 'IFA' to our home. We were totally upfront about my debt, including the payday loans and I specifically asked whether they would be a problem. I was told (in a roundabout way) no. This guy was totally confident and we were swept up in how knowledgable he appeared to be. So swept up that we paid the lifetime fee (over £300) plus the valuation and another fee (over £900 in total) and signed on the dotted line.

The mortgage application to Halifax went in at the end of the following week after my partner had provided some more information about his self-employment. We also instructed a solicitor and put down £300 for that.

5 days later, on the Wednesday, my partner received a call from an administrator at New Homes, advising our application had been declined. When asked why, she said Halifax wouldnt talk to them, as they were a third party. In the next breath, however, she was telling us to send over our up to date credit reports, as there may be an issue with an address.

I did everything immediately and sent over all the required information, including an email confirming all our previous addresses and move-in and move-out dates - but strangely enough, I hadn't heard from our IFA. It was my opinion that he should have been straight on the phone to us, to discuss the problem. As it happened, I had to call him several times before he finally picked up. He looked at the information we sent him, said he couldnt understand it as our credit reports were showing as excellent and he would liaise with Halifax and their BDM to get to the bottom of the issue.

On the thursday I emailed our 'personal contact', the administrator and she advised that everything was in hand and they were considering all the options.

What really raised all my suspicions (and caused my blood to boil) was that for the next 4 days, our IFA ignored all our calls and emails and texts. I left several voicemails asking for a call back. I know things dont happen over night, but I felt like we deserved an update, just to find out what was going on (even if only to be told they were still looking in to it) I got more and more frustrated.

Eventually, on Monday morning, I managed to get through to the IFA. He advised that he was due to liaise with Halifax that day and would get back to me.

He eventually called me back in the evening, only to advised that Halifax had given us a straight decline. That was it, game over, the end. I asked why and was there nothing else we could do? He said it was me, that I was too risky, especially with the payday loans having been taken out. and, despite telling me they wouldnt cause a huge problem at the outset, he told me that payday loan lenders should really be making it clear how badly they can affect your chances of getting a mortgage - something HE clearly knew all along!! He said if we ever needed any help in future to let him know.... sounding as if HE was doing us a favour, even though we've paid a lifetime fee!!!

To make matters even worse, ive obtained a copy of the mortgage application and it is ridden with errors, particularly in respect of our previous addresses and move-in and move-out dates.

I now am suspicious of what they have actually done on our behalf and I feel totally conned.

My partner and I have come to terms with the fact that we now have to start with a clean slate and wait a couple of years (they have done so many searches on our credit reports, we'd be crazy to even try another lender). Hopefully, we will recoup most of the money we've already paid out.

I just thought I'd share my story, in the hope that others are able to avoid these complete conmen.

Jimbo1976

Some lenders don't really like accepting borrowers who have used pay day loans. However the person who gave you mortgage advice should have known this.

You have paid a number of fees. You should speak to the developers about the £1,000 reservation fee. It would appear that whatever "credit checks" they did not not reveal the pay day lender issue. Whether or not they return this will depend on their terms and conditions and possibly how hard you push the complaint citing the issues with the IFA they sent round.

You refer to a "lifetime" fee, was this linked to the mortgage? if so you should not have to pay it if you haven't been given the mortgage. The IFA should have given you a KFI (which is basically a mortgage quote) which should explain all of the fees and charges. You also mention a valuation fee, but i suspect that you will not have been charged for this or if you have it should be refunded as i doubt Halifax would have instructed the valuation.

If you are unhappy with the advice you have received from the IFA you should write to complain to them explaining your grievances. These may include the fact that you disclosed the pay day loans in advance and the fact that the application form does not reflect the correct dates (assuming you supplied correct dates). If you are unhappy with the firms response then you can take your complaint to the Financial Ombudsman Service.

With regards to your legal fees, you may get some of these back depending on how much work (if any your solicitor has done). Speak to them ASAP to advise them of the situation. You may wish to put any losses in legal fees into your complaint to the IFA if you feel they are responsible for these.

If you are still keen on buying a home, speak to a decent mortgage broker or IFA. Ask for recommendations from friends and family. There are some advisers who contribute to these forums who do a great job helping people. They may know of lenders who aren't so bothered with payday loans.

Good luck

droiderm

I am currently using New Homes. We have recieved a DIP so far, but the original application was full of errors, and questions filled in the form that they didn't actually ask us......

I had to push for those questions to be asked. You wouldn't believe it.

We have met the IFA they sent round, she seems much more clued up. However, alot of the information she was checking with us was incorrect, salary, partners debt amount. It's quite scary to be honest.

Hopefully the woman dealing with the full app is better, so fingers crossed.

I had brief dealings with a different mortgage company, who seem to routinely put everyone through the Halifax DIP. Maybe the least solid one? A cynic might say they want as many names in the hat as possible, irrespective of the emotional and financial cost to the client.

Dave_Ham

This is so poor it is untrue.

I could tell you in 10 minutes if Halifax have declined at DIP stage and chances are that is all they have done.

Your issue for now and the future is that typically Halifax will not decline based upon use of payday loans. Whilst they will not like this at full underwrite (if it is done as such) they will not decline.

There must be something in your report, forget the scores and commentary Experian provide as they are utterly worthless.

A decent broker will take 10 minutes to identify in either of your credit reports what the issue is, again unlikely to be address history through incorrect keying although more possible than payday loans.

Solicitors tend not to start searches until an offer is received, although we are in newbuild territory where clearly so far none of the developer or mortgage broker has been working for you so no surprise if the solicitor is not either.

I wish you better luck in the future, but certainly complain.

Thrugelmir

I would seriously consider reporting the Brokerage to the Financial Conduct Authority ( part of what until recently was the FSA). Initially though speak to a Director of the firm requesting a refund of your fees.

Also I would speak to the developer both at local and head office level. Expressing your concerns should no adequate response be received. Lack of referals will hit the brokerage hard.

Individuals operating in this manner do little for the Financial services industry as a whole.

kingstreet

Did you have your Authority To Proceed from the HCA HomeBuy Agent, before you applied for the mortgage?

You should not make any commitment to pay fees until you have this.

Halifax DIP doing a full credit search?

That is not the case. A Halifax DIP is a soft-search only and is therefore not reliable.

ChopperST

We are in the process of buying a new David Wilson home and had to use the New Homes Helpline to "prove" we could afford the property.

I have always used my own IFA and explained to them I would not be using them, however they went through a quote etc. etc. and came up with a product with Nationwide, I was led to believe this was a mortgage agreement in principle...

What it is in fact is a basic affordability check, they then pass you onto a mortgage advisor in your area, seems very much like they are a call centre recieving referrals and possibly getting referral fees?

Whenever dealing with something as important I feel its best to pay for a professional who you can deal with face to face rather than a faceless call centre worker.