Will Halifax accept our mortgage with a default?

Dave_Ham

I would almost certainly say your adviser has taken a punt and not included it and got lucky. I would imagine she has taken the view that if she includes it, it will decline so rightly or wrongly this is why it has not been declared.


Sometimes you cannot attach logic to the credit scoring process, so whilst it should be there based upon experience I would suggest they have not found it.

ljh1989

I can't see how equifax matters, I can see that experian has been looked at, and the information on the default is there (?)

ljh1989

Fingers crossed then. What does underwriting actually mean then? Is it a fine tooth comb or is it more checking the information ?

Leon_W

To settle your own mind ask for a copy of the application from your adviser.


If it's on there and Halifax have agreed it then there really isn't much to add. Please keep us updated how it goes.

Dave_Ham

Equifax matters as potentially they can review this post application/offer.

Your case is an anomaly as 95 out of 100 times it would fail the credit score, so difficult to interpret the next steps.

Most of your underwriting should/would have happened already and from the valuation being booked, typically you will receive a prompt mortgage offer unless being looked over specifically by one of their dedicated underwriting teams.

You ask your broker specifically what was declared and they should really ensure the application is completed diligently and therefore may retrospectively tell Halifax about the default and the end result will probably be a credit score fail.

You should clearly do this for completeness, but whether you do is down to you.

No-one can unfortunately offer you any reassurance on here though as each case is managed differently and some people get lucky and looking at some of the horror stories on here; some not so much so

hoops77

I'm in a very similar situation
Porting our mortgage with the halifax
Have three defaults.
Paid our mortgage for 8 years made regular over payments.
Reducing our mortgage from £175k to £115k.
We will Only have a 41% ltv mortgage.
Been told that we are only waiting for the valuation.
We were honest and clear about our credit when we applied.
Even got referred to an underwriter who cleared the mortgage to continue.
But yet a month in we're still waiting??
I ring them twice a day but nothing??
Rather get an answer either way so I can start sleeping again

G9G

Dave_Ham wrote: »

Ok, few things to clarify here.

The 65% restriction is one based upon credit file and is Halifax one up from fail, so this would be based upon credit file.

So does this mean that Halifax have seen the default and this is why they have only offered me 65% LTV or do you still think out of chance they have not found it and that is why I got an offer?

ljh1989

I've heard people saying on different threads that halifax have an internal grading system. If you're classed as A then you get 90% LTV max, b grade gets 85 and c gets 65.

It looks like either the system is okay with a one off default if everything else is okay or people slip through the net

hoops77

Learnt about the halifax grading system last week.
A1 being the best
Working its way down.
A2
A3
B1
B2
B3
C1
C2
C3
Was also told that at full application and soft search that defaults show up.
They ask you at application if there any defaults or ccj
From my experience so far it's simply a case of a underwriters view .
A advisor at the halifax told us our application was a2
We have 3 defaults on our file.
But we have a mortgage with them allready which were reducing by 60k and length being reduced by 2 years.
Our ltv is 64% being reduced to 41%

Madviking850

Hi all,myself and my wife are trying to obtain a 140k mortgage,for a A.I.P.with Halifax,but have 3 defaults between us,totalling £577,ageing at worst to around 4.5 years..they are currently unsettled,would we be better off sorting these,or would it be fairly insignificant as we have a 10% deposit,and my credit score is a rather paltry 144,the wife's is a more palatable 560-odd I think..the MA we have seems to think it wouldn't be a huge problem with them, but,having said that,we have just been declined with RBS today..I understand the Halifax is an initial soft FP...