Halifax rate switch nightmare

nosebag

PS. They've told me a broker cannot help with this (A roll number deal switches, it must be the customer directly). I'm not convinced they were right...

nosebag

Hi, for anyone interested - the process of switching is as described. They treat it as if it were a new application. Old account is closed, new account is opened. Two routes:

1 - if term and amount borrowed are the same and not borrowing into retirement, and a repayment mortgage, then they run a 'budget assessment' based on the info provided by applicanto over the phone, and don't ask for any payslips or any other outgoings/income proofs, just they do this extensive 1+ hrs full interview over the phone. They still run a credit check.
OR
2 -if term changes or amount changes or any other complication like an interest only mortgage, expect a full application with all the checks and bells and whistles... meaning payslips, bank statements etc.

In my case it was scenario 1 so likelihood of them not offering new fix rate is virtually null.

Still it took 2 phone calls so far (happened in the same day). First, interview to provide all info, then one hour later an 'offer which isn't exactly an offer and a recommendation' - which is essentially a mortgage illustration with all the info - interest rate, monthly payments, T&Cs etc. Funnily enough this is called an 'advised route' even though I knew exactly what product I wanted to switch to, I still had to suffer the pain of being explained everything as if it were a completely new product.

Next step is them sending by post a declaration form to be signed. Once that happens they'll call me again ! to go over the actual application - full credit check happens at that time. Then, they'll issue an offer which needs to be accepted. So still a long way to go - however the advisor did say the new rate *might* be in place by 1st of June.

Not holding my breath... very painful process for a simple rate switch for an existing customer, the only reason being given is the mortgage numbering system which isn't my fault at all.

Thumbs down Halifax....

nosebag

An update from me, for anyone in this situation... Got the declaration form which I signed and mailed back, then after they received it I went through another half an hour mortgage application phone call - for the mortgage advisor (NB: very helpful woman) to take the property's details... then was told that I will receive a mortgage application confirmation and a mortgage offer in the post.

Once that's received I have 10 days to evaluate the offer - they won't call any more. But, I can choose to waive the 10 days by calling them to tell them I accept the offer. Then I need to call them again to set a mutually agreed completion date... as if it were a new mortgage

The advisor was very helpful and moved as fast as they could.. but I doubt they'll be able to switch me to the new rate before the 1st of June - even though I'm not changing the amount borrowed, not changing the terms either, it's a simple rate switch to a new fix.

ThePants999

nosebag wrote: »

Funnily enough this is called an 'advised route' even though I knew exactly what product I wanted to switch to, I still had to suffer the pain of being explained everything as if it were a completely new product.

Yes - if they're treating this as a new mortgage, all direct-application mortgages must be on an advised basis these days.

Thrugelmir

nosebag wrote: »

Once that's received I have 10 days to evaluate the offer - they won't call any more. But, I can choose to waive the 10 days by calling them to tell them I accept the offer. Then I need to call them again to set a mutually agreed completion date... as if it were a new mortgage

Which lender did you originally take the mortgage out with? Also when?

nosebag

May 2012 Halifax (no broker).

nosebag

Got the mortgage application summary in the post. Next - mortgage offer. This is almost as exciting as applying for a new mortgage (less the anxiety).

Wait... I am applying for a new mortgage. I'm re-mortgaging to my current lender through no fault of my own

nosebag

So I got my mortgage offer for the 'new' mortgage, two weeks after I called them. It wasn't that bad - the mortgage advisor was very helpful and moved fast but still... a lot of stress involved.

There's a 10-day reflection period which I've just waived by calling them, so completion should happen 31 May, with 1st payment at new interest rate going out 1st of June.

Not sure how long it would have taken if I had changed any of the mortgage terms, but advisor said up to 6 weeks. Good luck to all in this boat.

PS. Timely article:
http://www.moneysavingexpert.com/news/mortgages/2016/05/regulator-acknowledges-mortgage-prisoner-problem-as-martin-meets-george-osborne-