Halifax Mortgage DIP

ray1971

I applied for a Halifax mortgage DIP via a countrywide broker yesterday
but it came back to him not declined or allowed.The broker is going to ring Halifax on Monday to try to get it sorted for me. Is the quite normal as I thought you will normally get a yes or no for a DIP?

kingstreet

Accept, Refer, Decline.

Then there's "corrective action required", or "alternative lending proposal". These are applied when they will lend, but not at the requested loan to value, or if the amount exceeds affordability.

ray1971

Blimey thanks for that swift reply on an early Sunday morning!!
He did mention something about refer but didn't explain.
Sorry to sound dumb but what does that actually mean?

kingstreet

It means a human being is going to have a look at it, possibly asking for more information or some documentation.

Do you have a Notice Of Correction on your credit file(s)? That would be one reason for a refer.

Any other credit issues you know about? Did you have a copy of any of your credit files before this was done?

ray1971

Yes we had a copy of our Equifax report but I'm not aware of any notice of corrections and don't know what they are to be honest.
My wife had a default for £250 in 2010 that was settled in 2011 but the broker did say that this should be on with Halifax.

kingstreet

You can have a notice of correction added if you are in dispute with a creditor or wish to explain an issue.

Halifax uses Experian, so it would have been a good idea to obtain the Experian versions of your credit files before proceeding. No, they are not all the same as different lenders provide information to and take information from different credit reference agencies. This means only by looking at all three will you get a full picture.

An old default shouldn't result in a defer, but I suppose anything is possible...

ray1971

Have now got my experian report on your advice.
My score is 944, I'm using 66% of my available credit, 5 positive factors and 2 negative ( high use age of available credit and balance of unsecured borrowing high).
Is there anything else I should be looking out for?
Thanks for your advice.

kingstreet

Nothing on yours, no.

You suggested your partner was the one with the issue(s).

TBH we'll never know why it's gone to a refer, but now it has, it will be dealt with. If the end result is a decline, post back.

ray1971

Update -
Halifax were only able to lend up to 65% ltv.This wasn't enough for us so my broker applied to NatWest and they have accepted us, so fingers crossed!!

Teaandtoast0124

Halifax said the sAme to me. I have an excellent credit rating. No debt. All accounts up to date. Then nationwide straight accept! Think haliafx are very strict at the moment

kingstreet

Halifax accept at 65% is a low-score response.

I had one today. We're trying to figure out if it's;-

not on voters' roll
not in UK three years
no visible credit use.

Hopefully, it's the top one, which is the easiest to correct in February.

ray - did the broker submit using MTE or NatWest website? If it's the latter, it's less reliable than Halifax DIP. Only MTE gives fully scored DIP with NatWest which is more reliable.