Mortgage initially Accepted, then Declined then now being reconsidered!!!

hamed930

Hi All,

Its my first post here and hope you can help me. I have applied for a mortgage with Halifax, Completed the application and passes the initial credit check with a pass score of A (Highest Score). I paid the evaluation fee, provided my proof of ID and copies of my payslips and all supporting documents required by them.

However, after my application was reviewed by the underwriter, my credit score was dropped from A to F (Failed score). I have asked my mortgage adviser and all he said it was because of my credit score!! I asked how come if I passed the credit check already at the beginning of the application and my credit report is showing that I have no outstanding balances, no unpaid bills, no charges and no court judgments and never been in debt before.

He asked me if I had any new commitments since we submitted the applications and I said no, he mentioned he was not sure why we were declined but it is related to our credit score. I asked him to appeal it and how can I go about it he said we don't offer appeals the decision is final. I hanged up with him, done some checks and found out that Halifax policy does allow appeals if I submit a complaint, I emailed the adviser and explained that I am not convinced why we were rejected. He called me the next day and said they will resubmit my case to a senior underwriter for a 2nd decision and this time it will be final!!!

I have collected some questions and queries about my case and written a 5 page letter that I wanted to send to the underwriter but was told its not possible, headed to one of the local branches and spoke to a manager asking her to help. She managed to look into my account, said that no way a case will be resubmitted if it failed from scare A to F and they don't have appeals anymore anyway. She also noted that on my file a note which she doesn't understand saying "Diplomatic Immunity keyed in". She asked me if i have diplomatic immunity (I am Egyptian but was never nor will be a diplomat) and I replied no!!

She decided to call the mortgage team over the phone and was told by the agent that they don't appeal decisions, but when she looked into my account she can see that my case was being resubmitted again!!! She challenged them why was the note for diplomatic immunity on the system and they gave vague answers but noted that we don't have diplomatic immunity as if we do they wouldn't have gone through the application in the first place.

To be honest I'm not sure what is going on or what will be the outcome. My only mistake was some searches I have done for a personal loan as I didnt want to use all my savings for the deposit after they have under valued the property I want to buy and I told the mortgage advisor that I will apply for a personal loan but he didnt warn me unknowing that these searches can affect my credit score !! Please let me know what do you think ? and whether they might accept my application after being rejected ? Thanks

Thrugelmir

hamed930 wrote: »

My only mistake was some searches I have done for a personal loan as I didnt want to use all my savings for the deposit after they have under valued the property I want to buy and I told the mortgage advisor that I will apply for a personal loan but he didnt warn me unknowing that these searches can affect my credit score !!

Have you taken out a personal loan to fund the deposit?

hamed930

Thrugelmir wrote: »

Have you taken out a personal loan to fund the deposit?

The asking price of the property is 104000 with a deposit of 6000 (which I can pay with my savings), the valuation came back as 97000, it meant i should pay a deposit of 12000 (which I still have in my savings but thought I can use a loan to fund some of it and avoid spending all my savings away and to help with some minor improvements needed..

Unfortunately I applied, but did not sign any deals though was more of checking my options .. I was too dumb and naive I think

Dave_Ham

It is certainly naïve to apply for the loan, as assuming this is also a 95% Help To Buy then they are incredibly selective.

This is not your issue though, I would put it down to a muppet in branch and hence the cloak and dagger responses as no-one really knows.

Diplomatic Immunity has been incorrectly keyed, but whilst this is likely to be the result of the decline it could be any manner of things. They could have linked an address with historic adverse, you could have had a credit issue in the 3-6 years which is only picked up later or there could be another reason.

Halifax are not great with appeals and certainly not credit scoring based ones, so either bottom this out with someone who knows what they are doing, go to a broker or guess on another lender where you may get a similar scenario.

Good luck

kingstreet

"Diplomatic Immunity" screw-up is likely cause IMHO.

redpete

hamed930 wrote: »

I have collected some questions and queries about my case and written a 5 page letter that I wanted to send to the underwriter but was told its not possible,

Going onto such detail that it needs 5 pages is rarely beneficial.

Contemptuous

I highly doubt it is anything to do with the diplomatic immunity note. That wouldn't affect your credit score.

More likely it's to do with the loan application. You cannot fund a deposit with a loan.

hamed930

Thanks for all the answers I am sure I never had a default nor an adverse or any credit issue which was confirmed When I checked my credit report on all the credit bureau, everything was clear and my credit score is 709. I am a doctor and never had any court judgments. I contacted a financial analyst to give me his thoughts about my credit report he said that the only reason for my low score might be bec I am not in the Electoral Roll which I can not do as I am Egyptian. I do have the full deposit ready and never mentioned during my application that I will get a loan to fund it. Dont know whether to have a hope in getting accepted after being rejected or not!

Goldiegirl

redpete wrote: »

Going onto such detail that it needs 5 pages is rarely beneficial.

Nor is hanging up on an advisor !

When the application was first keyed, the system didn't gather all the information held on the credit search files that the Halifax use. Maybe you had an agreement in principal?

However, when the full application was keyed on their system, it found sufficient adverse information to score you as F. Maybe in the initial stages your full name wasn't keyed? Adding middle names often finds ALL, the information on file.

They will get a print out of the adverse information that is held - so they should be able to tell you what the problem is.

I'd suggest that simply not being on the voters role is not enough to score as low as F - there must be some adverse information.

Generally the only way an appeal could succeed, is if you can prove that the adverse information is held by mistake.

amnblog

Don't bother trying to appeal. Try a new lender through a competent broker.

The difference is the credit score could be down to a dozen different reasons and speculating wont get you your lending.

StuC75

Sounds like the recent loan search mentioned in Post 3 could be impacting affordability - since it would suggest being used as deposit source....