Halifax product transfer problems.

worriednoob

Hi guys,

I'm at a stage, where I should be able to transfer my Halifax mortgage product to a different one. Since I've lost my job, I have been told that I can only go down the NON-ADVISED route as they don't go through the full affordability checks and simply allow you to switch your product, so long as you don't need to make any changes to your terms or ask for additional borrowing.

The problem I have is that Halifax only do the NON-ADVISED option ONLINE, but this service has been down since I tried at the beginning of june and according to the mortgage team could be a very long time (at least a few months) before the IT problems are fixed.

Halifax are saying that there is no phone or in-branch service for NON-ADVISED and my only choice is to go down the ADVISED route. Surely if I have no job and proper income, an advised route will most likely decline and force me to go onto SVR????

I've already lost out on the 4yrs 3.19% deal that was available at beginning of june 2014 and the interest rates are slowly climbing.

Can anyone please advise what I can do?

Thank you

kingstreet

You appear to have no option but the follow-on rate, standard variable.

As you say, you are unable to pass the affordability check for an advised PT.

Thrugelmir

worriednoob wrote: »

Surely if I have no job and proper income, an advised route will most likely decline and force me to go onto SVR????

Non advised will most certainly have some checks and balances built in. As lenders cannot absolve themselves of their responsibilities by simplying an online self declaration system. Self certification died along time ago.

worriednoob

Yes, non-advised do have checks, but I believe these checks are only if I'm either asking to change the term of the mortgage or for additional borrowing and none of these apply to me. I simply want to switch from one fixed product to another.

Anyway, they have fixed the IT issue and now I have managed to apply online. They have confirmed that I would have been eligible for the 3.19% product, so they will either reimburse or try to apply for the correct product for me.

superdudeo

Hi worriednoob,

Would you be able to inform us of what happens? Lots of stories about Halifax being too strict and running MMR checks unnecessarily. i.e for product transfers where no changes to term or borrowing apply. Thanks

amnblog

Expect Halifax to run checks on PT where cases run into retirement or have an element on interest only.

The best thing to do (and I know I keep saying this) is to engage a broker to help you with Halifax product transfers.

worriednoob

@ superdudeo - Here is my full update :beer: :-

Halifax have now fixed the IT issue. At first they said that it's subject to affordability checks, but after threats that I was going to take them to the ombudsman and make an example out of them on watchdog, they have now backtracked and and after checking their system, they confirmed that I was AUTOMATICALLY eligible as I'm simply transferring the product. They have now "keyed" in the 4yr 3.19% rate and this will apply from july 2014. I call that a RESULT!

@amnblog - I'm less than 40yrs old and my original term on current rate is only 7yrs left, so PT should not apply to me.


I just want to add, that being a borrower that has never missed payments and since I'm not asking to borrow more nor am I asking for shorter/longer term, I really should be allowed to move from what is currently a more expensive fix rate of 4.09% to a lower 3.19%. The reason is simple...my mortgage switch would make my payments lower, rather than higher, so it's less of a risk. But banks are simply making excuses not to move you, even though the rules say THEY CAN! :mad:. This is why:-

Jonathan Clark, of mortgage broker Chadney Bulgin, says: ‘We are already seeing borrowers running into problems.
'Rates are likely to start creeping up in the next few weeks, but some of my clients are being told by banks they have to wait the best part of a month even for an interview with their lender.
‘By that time the best deals could well have gone. To make matters worse, we are also seeing lenders failing to act in the spirit of the new mortgage rules.
‘Even if you don’t want to borrow more money and have been paying off your loan for years without a problem, banks are insisting on reassessing you, when the rules clearly state they do not need to do this. It is crackers.’
Ray Boulger, senior technical of broker John Charcol, says: ‘It beggars belief that borrowers are being told they cannot move to a cheaper deal because the lender says it’s unaffordable, even though they are paying much more to stay on the bank’s own rate.’

Read more: http://www.dailymail.co.uk/money/mortgageshome/article-2660475/Faultless-borrowers-locked-best-mortgages.html#ixzz350ButvTt

I hope this helps others too!!!

superdudeo

Thanks for the update.

I wonder what is more probable? Halifax are being careful over MMR rules or they want as many people on SVR as possible?

It's really concerning that one of the biggest lenders in the UK are taking this position.

Thrugelmir

worriednoob wrote: »

The reason is simple...my mortgage switch would make my payments lower, rather than higher, so it's less of a risk. But banks are simply making excuses not to move you, even though the rules say THEY CAN! :mad:.

Lenders only have finite tranches of funds to lend at given rates. So not everyone could obtain the same rate in any event.

worriednoob

I get the feeling that forcing people to go through an affordability check is just an excuse in the hope that many will fail these checks, hence forcing people onto SVR in order to boost their profits.

I understand that Lenders have a finite amount of funds to lend at given rates, but this is more than just a coincidence...I think its more of a setup...a bit like the PPI scam.

worriednoob

It looks like I was right :-

http://www.dailymail.co.uk/money/mortgageshome/article-2665283/FCA-boss-Martin-Wheatley-Bankers-enforce-lending-rules-unfairly.html