Halifax Mortgage Promise - confused!

kingstreet

When we do an agreement in principle with Halifax, not only do we get the result on the screen, but we can also get one or two extra messages, such as;-

• This application will be referred for a review of the total debt held with Lloyds Banking Group, upon submission of a full application

• This application will be referred for a review of the Credit Bureau information, upon submission of a full application

with the latter indicating manual searches may well be done with Call Credit and Equifax to establish the full picture and any explanations requested.

We have in the past (in only two out of hundreds of cases!!!) had an agreement in principle accept, a full application accept and after a few days, a decline based on credit bureau information.

tygar2

kingstreet wrote: »

When we do an agreement in principle with Halifax, not only do we get the result on the screen, but we can also get one or two extra messages, such as;-



with the latter indicating manual searches may well be done with Call Credit and Equifax to establish the full picture and any explanations requested.

We have in the past (in only two out of hundreds of cases!!!) had an agreement in principle accept, a full application accept and after a few days, a decline based on credit bureau information.

Thanks Kingstreet.

Would the advisor have been able to see those extra messages and is he supposed to tell us? All I remember him saying was something like it has gone through, no problem.

It is reassuring to know that there is a chance of rejection but that it is very low. I guess I do not have too much to lose (apart from the house of her dreams!)

Xyzzy

It sounds like you've provided everything possible to get an accurate lending decision. The soft search at the AIP stage is pretty much as thorough as the full search, the main difference being that the data is up to 30 days old for the soft search, These things can be surprising, I've seen people with CCJs on file sail through.

tygar2

Xyzzy wrote: »

It sounds like you've provided everything possible to get an accurate lending decision. The soft search at the AIP stage is pretty much as thorough as the full search, the main difference being that the data is up to 30 days old for the soft search, These things can be surprising, I've seen people with CCJs on file sail through.

Thanks for sharing that - reassuring. Are you a broker?

E&G

I also have a 'Mortgage Promise' from Halifax and was wondering how reliable they are. One of the points made in an earlier post is about going to a full check - does the soft search not pick up on any issues with the credit file (otherwise what would be the point)?

tygar2

E&G wrote: »

I also have a 'Mortgage Promise' from Halifax and was wondering how reliable they are. One of the points made in an earlier post is about going to a full check - does the soft search not pick up on any issues with the credit file (otherwise what would be the point)?

Hello and good timing with your question! I really should have come back earlier to give an update but it's been hectic.

Anyway, the conclusion is that we have just moved into our new house! Got the keys just before Christmas! :beer::beer:

After the mortgage promise we put an offer on a house, got the offer letter and surveys done but that fell through. This was actually a blessing in disguise as we found a better property and saved £5000 on Stamp Duty due to the recent changes:j:j

We went back to the Halifax and were given a new offer for the property we have bought. This house is more expensive than the last but was within our Mortgage Promise Limits - no further credit check was carried out - just an update of most recent payslips. We had to again pay £500 for a valuation but Halifax refunded the valuation fee for the first property at the start of of our mortgage. We also got £750 cash back which went towards solicitors costs.

I spoke to the Halifax mortgage advisor and he confirmed what Xyzzy said earlier - if a mortgage promise is issued it means you have passed Halifax's internal credit check even though it is a soft search. I have multiple unsettled 5 year old defaults which I declared but still got the mortgage with my wife. On my file a credit check only appeared after offer was made.

Hope that helps you and anyone who is searching for an answer to the same question - thank you all for your help:T:T.

E&G

Thanks - that is good to know, and good luck in your new home!

aj2018

21-02-2017 12:04 AM
Xyzzy It sounds like you've provided everything possible to get an accurate lending decision. The soft search at the AIP stage is pretty much as thorough as the full search, the main difference being that the data is up to 30 days old for the soft search, These things can be surprising, I've seen people with CCJs on file sail through.


Hi
We are in a weirdly similar position as the you, I understand you have now got your mortgage, congratulations. We are about to make an app to Halifax and we have a decision in principle. Getting really nervous now though.

I have been googling about how much Lenders can see with a soft search, I wanted to ask XYZZY if they are sure about the above post? Every credit agency I have googled do not say that a soft search gives the same information as a hard one? Can't add links as I am a new user.

I'm only asking because obviously I don't want to hurt my credit file even more than it already is!

Thanks
AJ

Remortgage_wannabee

Hi I just came across this thread and wondered if anyone could advise please? As reading the above does give me some hope in our situation which is currently dire.
I already have a mortgage with a lot of equity in the house and I want to remortgage as my husband and I have accumulated ridiculous amounts of debts on credit cards through a combination of doing up the house and financial disorganisation. I actually think I have a form of ADHD (undiagnosed) We have good salaries which is why we’ve been able to let it get to this stage.
We asked bank to remortgage to clear off our debt and this would still leave us in a position of under 55% loan to valuation.

Despite poor credit rating mortgage advisor at bank said they would look at it as a human being and realise that the monthly payments would be vastly reduced when doing affordability calculations . Initially it was accepted ina. Credit search plus affordability calculation but it was subsequently declined by the underwriters as there were a number of late payments on our credit accounts (though everything had been brought up to date) and also some bounced payments on bank statements (again brought up to date, and we’d veen charged handsomely and covered those charges costs). They also went through our credit file with a fine tooth comb and noted that we were still spending on our credit cards because the balances weren’t going down (the balances are at the max anyway, we can’t get them down much as so much of our income going on maintaining them).

I had spoke briefly to a mortgage advisor who suggested Halifax might be a good option to try but after that we were looking at subprime lenders and high interest rates. The post above gives me hope that Halifax might be possible but I am really wary and not sure if we should wait 6 months to try and get rid of recent missed payments issue. The trouble is we are unlikely to bring down our overall credit card balance as it eats up a huge proportion of our income and the interest rates are high and we are not eligible for a 0% switch. We did try with the TSB but they failed us on ‘large indebtedness and missed payments’ . At the moment we are just sitting tight and trying to cut unnecessary spending out our bank statements but I fear that something will go horribly wrong and we will be stuffed. Thoughts te Halifax in my situation??many thanks !

Thrugelmir

Remortgage_wannabee wrote: »

At the moment we are just sitting tight and trying to cut unnecessary spending out our bank statements but I fear that something will go horribly wrong and we will be stuffed.

Get over to the Debt Free Wannabe board for support and advice. You'll get nowhere unless you really want to. This may involve a period of self imposed austerity. There's rarely gain without some pain. Though the satisfaction you'll gain at at the end of the tunnel will live with you eternally.