HELP! need to appeal a mortgage decline!

jojok2012

Hi

New to here and this is my first post as I'm in need of advice!!

Currently purchasing a shared ownership home and all was perfect until today as had successful DIP, submitted full application and again, all was successful and paid valuation fee - now they have cancelled the valuation and declined my application due to a financial associate (husband) having adverse credit! Even though it was an application in my sole name, he would be living in the property they said...

I spoke with Halifax who confirmed the reason for decline was my husbands adverse credit. I immediately asked how and why (seeing as it was in my name only) and she explained the financial association.

I explained we had a rough time that particular year (few yrs ago) as my husband was made redundant and it had a knock on effect which was obviously unfortunate. She recommended that I put in an appeal.

Since that bad 6 months or so we have had perfect records (not even late payments) and had since then saved and paid for a wedding and then had a child. My husband is in steady work now (I've never been unemployed, I've worked for my company for 4 yrs in professional/managerial role which I got to through hard work and promotion - increasing my salary in that time by nearly 40%)

I have a £10,500 savings and my husband has an additional £4000 to put towards fees and moving costs etc (his money was never mentioned to mortgage people though). The property is £142000 - I am buying a 25% share so deposit required was £8600 and mortgage needed was aprox. £26,000 (which is less than my basic annual salary!!!!) Its a no-brainer that its affordable! I have passed all the affordability checks.

I'm really hoping someone can advise me firstly re: the appeal - what should I include and does anyone have a template? Has anyone successfully appealed with Halifax and can they please give me advise?!


Any helpful advise most appreciated!
Thanks

Thrugelmir

Financial relationships are built on trust. The lender determined the reason for your husbands non inclusion on the application. So decided it was an intentional act on your part. If the mortgage is easily affordable on your income alone then perhaps including your husband at the outset would have been a more honest approach. Rather than raising suspicions about yourselves.

Mokka

It's true that financial relationships are built on trust, but aren't mortgages the safest kind of a loan to a lender? Especially with 25% deposit?

I think you have nothing to lose now by appealing. If unsuccessful explain the situation to the new potential lender right from the start.

magpiecottage

Without knowing the full details of the case, what are they doing looking at your husband's personal data?

Dave_Ham

Ok, firstly this is very unusual and may be more about the scheme protocol than normal lending protocol. I will make an assumption that your Husband has serious adverse credit history (bankruptcy or IVA?) as cannot imagine a default would scupper this.

Unfortunately I think it is very unlikely that an appeal will be successful, so would spend your time and effort looking for another solution.

Good luck

jojok2012

Thanks for the replies.

His non-inclusion was only because he recently started a job after being self employed for a couple of years. It was put on the application that he would be living in the property so how was there any deception?

His adverse credit was one CCJ and a default - not what I would call horrendous? They have been satisfied and were small amounts - from 3/4 yrs ago

I'm surprised as broker said they shouldn't have even looked at him as he wasn't on the application and hadn't given permission to be searched!

kingstreet

If you have any joint financial connection, such as a bank account, or have previously applied for any joint accounts or credit, your credit files are linked and his history is visible.

You need to obtain all three versions of your credit file and carry out the necessary disassociations, first closing any joint accounts which are causing it.

jojok2012

Yes we have a joint bank account...

Thanks for the advice.

Mokka

Just to add to the good advice above- allow at least 1 month for this. If I were you I would ask for advice how to go about this though. After you remove yours or his name from the joint account how are you going to explain why are you no longer associated, since you are still married? I am sure there is a way round this.