appealing mortgage application

tiggy748_2

Hi,

We currently have a 78K mortgage on a 85% LTV rate with halifax. We are not tied into any rates/deals and the interest rate is around 3.4%. The mortgage is in my husbands name. We have sold the house for 113500 to a first time buyer. we are due to exchange in the next two weeks and are now desperate.

For the past three years I have been a student whilst my husband drives lorries. 3x over the past three years we have have been late paying the mortgage - only by a few days and have never missed a payment. I believe we have now been up to date with every payment for a clear year now.

I have been unemployed for four months now and there is little work where we are.

In short we want to move. Halifax rejected a mortgage application based on credit history. But we have been advised to appeal as our new situation is strong. (We have found a house near to Hull for 50K. We need to do some work to it, but would still be able to put down 20K deposit (60% LTV rate) meaning a mortgage of 30K) All our accounts are with Halifax so they can also see strong income coming in from my husbands side for the past three odd years.

Can anyone advise on how to really make a good case? or is the situation enough? Should we get a solicitor to represent us?

Can anyone talk us through the appeal - what evidence will we need, best way of handling this, time scales etc

Thanks

amnblog

Who advised you to appeal?

Thrugelmir

tiggy748 wrote: »

.

Can anyone advise on how to really make a good case? or is the situation enough? Should we get a solicitor to represent us?

Can anyone talk us through the appeal - what evidence will we need, best way of handling this, time scales etc

Thanks

There's no appeals process. Halifax can decline your business without reason. Possibly the size of the new mortgage is one reason.

Where's the rest of the money going from the sale of your existing property. To clear debt?

Dave_the_Ginger_Cat

It's the bank's choice if they want to lend to you, and they are under no obligation. I know you might not like their decision, but a lawyer really won't help you here, as they do not have to lend.

If you have used a broker, I'd recommend you seek their support to help collate information on your case, and if not, I'd speak to the Halifax directly.

If your credit's not been so good in recent years, you might be well advised to consider renting for a period, rebuilding your credit record, and showing a lender that you're in a good position to take on new lending.

You may find that you need to approach a different lender, who is happier to take on customers with less than grade A credit histories, but their rates will be higher - to them, I'm afraid you are a higher risk

Simon_gloster

There are options here likely with sub prime lenders, seek a broker. You cannot port their rate anyway plus appealing a credit score decline is possible as their risk is decreasing, but unlikely.

tiggy748_2

Our mortgage advisor told us that we might be able to port the mortgage over, and it was halifax advisor that said we should appeal based on the grounds that we are a lower risk etc etc.

I had not considered it an option but he seemed to think it would have a positive outcome. I just wanted to give a it a good shot.

Personally i think coming off the housing ladder is a bad idea. Id rather rent our house and and rent in withernsea. Our house would rent for £150 more than mort, and withernsea rent is about 200 less than our mortgage.

kingstreet

tiggy748 wrote: »

Our mortgage advisor told us that we might be able to port the mortgage over

Which is porting the rate/terms from the old mortgage to a new one, if you qualify for that new one.

Many people think you can transfer a mortgage from one property to another to avoid the new status checks.

You can't.

Goldiegirl

When I was at the Halifax (I left in 2009) generally, the only time an appeal was successful was if an applicant could prove that the adverse credit information was held in error.

However, things have changed since then, and I would imagine that the chances of appealing successfully are even slimmer than they were back then.

tiggy748_2

we dont have any debt just our mortgage. In the last 7 years we have cleared nearly 100K in debts, loans etc and halved the mortgage by working 60 odd hours a week each. The spare money from sale would be needed to do up the house -its a dive. Done up there is around 20-30k profit in it.

stebiz

If you are moving areas certainly try renting in Withernsea rather than buying. We went there last year for a few days and spent more money on petrol travelling out than we did spending whilst we were in. It was tired, a population with an average age of 105 and not a lot to do.

tiggy748_2

kingstreet wrote: »

Which is porting the rate/terms from the old mortgage to a new one, if you qualify for that new one.

Many people think you can transfer a mortgage from one property to another to avoid the new status checks.

You can't.

Yep i realise this - would like to take the 3.5% with us. Cant say id understand why a bank would continue risk of loaning 78K when they could take a lesser risk at 30K with a lower LTV rate.
We wouldn't not pay the 78K and are fine for money, so I guess they are just making money from us.

I would just like to be earning some money! I want a job its driving me must. cant understand why anyone would be unemployed its so dull.