Halifax rate switch nightmare

nosebag

So I called Halifax this morning as my fix rate ends in July, only to find out I cannot do a simple rate switch because my mortgage is on their 'old system', mortgage number starts with A and I don't have a 14-digit account number. They told me I needed to book an appointment with their Specialist mortgage team and they will treat my rate switch as if it were a brand new mortgage application. It will take up to 8 weeks :mad: and I need to send in payslips and P60, and go through a 1 1/2 hours phone interview with them, to detail all expenses, credit cards, loans, and so on. I'm not borrowing more and not extending term either - all I need to do is lock in a new fix. Property value went up significantly (NB: they quoted me an index valuation that puts me in the 60% LTV band), my salary went up by 5K since I took the mortgage... but I also have new credit card debt and higher childcare expenses - and according to their calculators on-line my mortgage isn't affordable :eek:

Anyone else went through this? It drives me nuts, and I don't understand why I need to do this, when everybody else can switch on-line with no hassle.

What happens if I fail affordability? Surely they won't keep me on variable? - which is almost 2pc higher than the 2-yr fix I'm looking for.

Can a broker help me with this?

Thank you.

zenshi

I have literally done exactly this today. Exact same scenario as you as well!

I called their specialist team last Thursday and booked an interview slot for over the phone for today. They rang me at the specified time. Yes it took about an hour and half. He then said to give him half hour and he would ring back with suitable offer. He did and I accepted. Emails were sent so things could get on the way. He anticipates my new rate will be up and running in about 3 weeks

Just to add, I'm self employed, have part repayment, part interest only (with no capital to pay, only equity in the house) and have 6 credit cards in default on a DMP

Affordability checks are not really an issue when you already have a mortgage with them I found

Hope that puts your mind at ease. Go for it, nothing to lose

AnotherJoe

Can you appeal this process? Speak to someone at a local branch perhaps?
Moan on their twitter feed about the illogicality of only allowing switches if you have the right number of digits in your account number?

nosebag

Thanks, that's reassuring!

My mortgage is a repayment mortgage, no part is on interest-only, and my credit history is spotless, so here's hoping...

Still annoying though, why can't I just switch online? Without all this craziness with payslips and bank statements 'as if it were a new mortgage'. I don't get it.

Did you get the interest rate you were looking for?

zenshi

You an switch......its down to the fact that it's an old roll number and not accepted on their new systems. A new roll number will be given over the phone during the process even if no product switch is made. Then you could do it in branch

nosebag

AnotherJoe wrote: »

Can you appeal this process? Speak to someone at a local branch perhaps?
Moan on their twitter feed about the illogicality of only allowing switches if you have the right number of digits in your account number?

I was told I couldn't switch in a branch - it can only be done through this Specialist team.

I work in market research and Halifax is a big client. I'm not allowed to moan on social media about them... not using my real account anyway.

zenshi

The rate I initially wanted is the one you're after but after speaking with the advisor I went for the 5 year fixed in the end. It suits me better even though I hadn't really considered it before

I have to send 3 tax returns and one payslip, that's it. I guess now they have to cover their backsides more than they used to. Annoying, when you know damn well that you can afford it but such is life

Bite the bullet and ring. Advantages of staying with them I found, was no fee, no extra valuation or solicitors and no major in depth credit checks

nosebag

zenshi wrote: »

You an switch......its down to the fact that it's an old roll number and not accepted on their new systems. A new roll number will be given over the phone during the process even if no product switch is made. Then you could do it in branch

I get that. Technical glitch, old numbering.

What I don't get is why can't they just transfer me to their effin' new system by using the existing info, without asking me to apply for a new mortgage. That's what the guy said, it will be treated as if it were a brand new mortgage application, with all the checks involved. I haven't done anything wrong, I've paid my mortgage on time like anybody else.

It's absurd.

nosebag

zenshi wrote: »

I have to send 3 tax returns and one payslip, that's it. I guess now they have to cover their backsides more than they used to. Annoying, when you know damn well that you can afford it but such is life

Bite the bullet and ring. Advantages of staying with them I found, was no fee, no extra valuation or solicitors and no major in depth credit checks

Thanks. I have a 1 1/2 hr phone appointment with that team, booked for 3 May but now I'm considering re-mortgaging to a different lender. Their 2.34% rate isn't that appealing any more, considering that I have to send in all the documentation required for a new mortgage.

zenshi

nosebag wrote: »

Thanks. I have a 1 1/2 hr phone appointment with that team, booked for 3 May but now I'm considering re-mortgaging to a different lender. Their 2.34% rate isn't that appealing any more, considering that I have to send in all the documentation required for a new mortgage.

I knew that with my debts and current income, no other lender would touch me with a 10' barge pole but you have to do what's right for you. Good luck

Thrugelmir

nosebag wrote: »

What I don't get is why can't they just transfer me to their effin' new system by using the existing info, without asking me to apply for a new mortgage. That's what the guy said, it will be treated as if it were a brand new mortgage application, with all the checks involved. I haven't done anything wrong, I've paid my mortgage on time like anybody else.

It's absurd.

Lenders are merely covering their own backsides by doing so. So not absurd in the slightest. Tighter regulation has had some unintended consequences. There's no possibility that lenders will leave themselves to any form of mis-selling claims in the future.