Halifax lending criteria?

[Deleted User]

Does anyone know where I can view this online? The intermediaries site has some basic info but I'm looking for the full lending criteria like you can view with other lenders.

After being told by two brokers that we can only get a mortgage with Precise due to my adverse credit history, the broker who works for the vendor's agent has looked at our credit files and suggested we could get a mortgage with Halifax as apparently they allow up to 2 defaults in the last 24 months not exceeding £1500. This broker will charge to do a full application so I am very wary as neither of the two other brokers we have spoken to mentioned anything about Halifax, and both said we'd have to go off high street. I can't find Halifax's lending criteria online to verify what he is saying, so wondered if anyone here knew if it was true? If anything, that falls under Precise's criteria so I just can't see how Halifax would accept that.

I am concerned that he is filling our head with lies to get us to pay for him to do an application, only for us to get rejected. Of course we don't mind paying if it gets a result, I just don't see how it can do. Does anyone know what Halifax's lending criteria is in terms of defaults? I have one settled default dated October 2014 for £866.

Cobbles_Duck

Apologies - I just re-read your post and noticed that you mentioned intermediaries site and can't message twice in an hour to correct myself. I'm afraid I haven't any info beyond that but I would be very surprised if they do allow 2 defaults considering I was rejected for 1 myself. Interested to know how this plays out

[Deleted User]

Thanks- although I have only had 1 default in 24 months, not 2 (the broker reckons they would allow 2). I definitely don't believe him!

Senior_Paper_Monitor

Halifax do not have number/date/value criteria on defaults - it is determined by score alone.

chelseablue

We have an agreement in principle from the Halifax, my partner has a default from August 2011.


I went through everything with a broker and he said Halifax or TSB would be the only mainstream lenders he would approach.


So far Halifax are willing to lend with his 1 default, although not done the full application yet (not found a house we like yet, but that's a whole other story!)

[Deleted User]

Thanks for that Senior Paper Monitor. What does that mean, in simple terms (sorry!) I know it doesn't mean score like what I can see on Experian, but what score do they use?

That's good to know chelseablue- although 2011 is well outside of what our broker has advised for our situation anyway.

Senior_Paper_Monitor

Lenders do their own score - using various data including the data in the credit report.

With some lenders there is a criteria check (i.e something like no defaults in last 2 years) and a score - there is no criteria check regarding defaults with Halifax, just the score.

An experienced broker will be able to give a good guess as to whether a particular report will pass muster with a given lender but there is always an element of guesswork on the scores (criteria is easy).

If a couple of brokers have assessed you as Precise territory I suspect they are right - I have little trust in the third one's assessment based on his incorrect report of Halifax criteria, but there is often an argument to 'have a punt' on Halifax (depending on the rest of your file) with their initial soft footprint.

Cobbles_Duck

Hi Senior Paper Monitor - Just wondering how this works in relation to people accepted for the AIP but then get rejected at full application stage; does this mean it is highly unlikely due to a default? That or the full score check isn't done at point of AIP?

alchemist.1

Halifax only do a soft credit check at AIP stage not a full one.

Senior_Paper_Monitor

Our database notes give as good a definition as any ...



Subject to DIP but low/medium tolerance.

Additional notes

The application will ask if they have had any adverse credit. If you tick yes it won’t impact on the score but it will mean that if it declines at a later stage they will refund the valuation fee. (Be careful with this if there is a non-disclosure of adverse from the client they don't have to refund the valuation fee).

At DIP they only get basic credit file. Its only at full application that they will get the linked address history over 5 years (rather than the 3 at DIP) and hunter information etc. therefore be cautious if you know they have historical issues. (The DIP uses Experian - the full application also uses Call Credit and Equifax so can often pick up any linked addresses etc at that stage)

[Deleted User]

Just an update on this- Halifax came back and said they would give us a mortgage, but only with a 40% deposit. Think we're going to stick with Precise, which will mean losing the property we put the offer in (as it's ex-council and Precise won't lend) and going back to hunting!