Halifax refusing to put me on new product

Bellabella_2

I think everyone taking out a mortgage makes the assumption that once a product ends they will have the option of going onto a new one and won't be stuck on SVR for the rest of the term of their contract. If the mortgage companies don't see that as the case too, then why do they send out letters telling customers to call them re a new product when the old one ends?

dunstonh

Bellabella wrote: »

I think everyone taking out a mortgage makes the assumption that once a product ends they will have the option of going onto a new one and won't be stuck on SVR for the rest of the term of their contract. If the mortgage companies don't see that as the case too, then why do they send out letters telling customers to call them re a new product when the old one ends?

The lenders send out a letter advising of the change of payment as they are required to do so. The lenders know that many people will use that time to check deals and may offer the person new terms to stay with them. However, they do not have to offer new terms and they can decide what criteria they have in place to offer those terms. As long as it does not discriminate.

I suspect that the Halifax dont actually want the OP as a borrower. He has had recent arrears that has required family help to clear and (in their eyes currently) his debt goes past retirement. That makes him high risk. Here is a chance for them to "encourage" him to move to a new lender and reduce the risk on their book.

Thrugelmir

dunstonh wrote: »

I suspect that the Halifax dont actually want the OP as a borrower. He has had recent arrears that has required family help to clear and (in their eyes currently) his debt goes past retirement. That makes him high risk. Here is a chance for them to "encourage" him to move to a new lender and reduce the risk on their book.

The Halifax's SVR is only 3.5% so hardly a penal rate of interest.

On commercial grounds why would any supplier of goods or services want to offer a customer that has previously defaulted a "better price".

If someone is struggling now then a base rate rise of 2% to 3% in the short term is not good news. Lenders are looking down the road and the potential impact on their mortgage books.

ethank

Lending is not a right, and they can refuse you.

Tillytwopaws

OP - Halifax policies have been changing. Originally a PT review could not be done if both parties to the mortgage weren't present, however that was soon relaxed! The policy if you already have an interest only mortgage without a repayment vehicle has changed too.

It's correct that a PT cannot be put in place while there are arrears on the account.

With regards to anticipated retirement age and state retirement age, we would check the customer's retirement plans whilst talking to them. If they plan to retire at say 50 years, we would ask for pension details that would allow them to do that. Otherwise we would use state retirement age, and if the customer has no plans to retire and is theoretically able to work beyond that age then we would refer to underwriters, especially if the term already extends into your retirement.

The SVR / HVR are currently 3.99% by the way.

It's not about trying to offload customers, we do want to help people go onto better deals however we are not always able to recommend a suitable product based on the customer's needs and circumstances.

There is the online product transfer option if all that's wanted is a new rate putting into place rather than term or repayment changes. This is an execution only service rather than the review which is on an advised basis.