Feeling deflated

Thefutureisbright

I could scream!!

We had a AIP for £240k with Halifax. Great! We only need £153k on the house we have our eye on. After a few months of having our house on the mortgage, we sold! Even better! We put our offer in on the house we wanted, accepted! Yay! Then the hard work started. Mortgage application submitted, then it gets sent to the underwriters. Uh oh.

A bit of background...I am on an annual salary of £40k (with bonuses averaging around £14k p/a but I know that's not taken into consideration so that's fine). It's come to light recently that I had a CCJ registered from back in 2011, due to expire in July for under £500, all paid and settled. I also have 2 defaults for £54 each which I am disputing as both from EE on the same dates and it was a dispute I had regarding cancelling contract.

Husband is self employed, has a current mortgage, never missed a payment, has a perfect credit rating, earning roughly £15k-£20k p/a, trading more than 4 years.

So, we've had the dreaded call from the bank today...a big fat DECLINED!!!

Absolutely devastated. Now my question is now, do we appeal the decision from the Halifax (despite my credit rating slipping to poor due to the search) or do we go to an IFA? Will it make a difference and will they be able to help? I'm just baffled that such a big player would decline someone with no payment issues in the last 5 years, a good salary, minimal outgoings and an asking of a mortgage well within our affordability!

Help!!!

ACG

Mortgage Broker all the way, I think there is a possibility you could get better rates than halifax are offering...no guarantees, but failing that there should be other options.

Dont feel deflated, but a broker will help get something through pretty sharpish whih is important as it probably will not be long before the agents start applying some pressure.

Thefutureisbright

Thank you!

Would we end up paying a premium for needing something sharpish? I know it's my own fault but I don't want to be penalized with a ridiculous rate for such a small debt, especially as it's due to fall off in 5 months! But like you say, the pressure from the other side is looming and I don't want to miss this opportunity.

ACG

I dont think you will need to pay a premium, but if you do it will be because of the defaults/CCJ, not because you would need to move quickly...Im not sure if that reads like I am being sarky, its not supposed to.

Thefutureisbright

No that read perfectly fine

From reading up on here, I genuinely thought we would be ok. My case fortunately for me doesn't sound anywhere near as 'in debt' as some threads on here from people who then went on to be offered but how I was wrong!

Do you think it would be worth an appeal with the Halifax or would I be wasting my breath? (I think I probably know the answer!)

ACG

I would probably be looking for a plan B.

This is the problem with the internet, I have seen 2 very similar case get different outcomes from the same lender. The devil is always in the detail.

Thefutureisbright

How do I stand with the fact my credit rating it now shot to the proverbial because of the hard search left by Halifax? It's making me look even worse...I do a good enough job of that on my own!!:)

I'm guessing I need to get on the phone tomorrow and see if I can find a decent broker in the area who can help me and my £600 debt.
:think:

ACG

1 search wont be the end of the world.

Thefutureisbright

*UPDATE*
We went to see a broker yesterday who was so helpful! We explained the whole situation and she ended up suggesting TSB who have accepted us in principle with everything declared. We just have to submit bank statements and my husband year end tax overview (he's self employed) and she's extremely hopeful that all will be ok. Finally there's light at the end of the tunnel AND we weee offered a much better rate than the Halifax offered!
The only obstacle we have now is trying to get our money back from the Halifax. We paid them a product fee and the valuation fee and so far they have only refunded us the valuation fee and the advisor doesn't seem too keen on replying to my emails!

Royster82

Valuation fee is in most terms and conditions and if the bank declined you a mortgage then they normally pay it back, don't know why Halifax are not have you checked the T&C's

Most T&C's are if you are offered a mortgage and you then decide that you don't want to go ahead then the valuation fee is normally non-refundable

Thefutureisbright

When we left the bank when the application was sent to the underwriter, the last thing I asked was if anything happens and it's declined, so we get the money back and he said 'oh yeah of course, we'll just refund it.' I've emailed him 3 times as I know we are within our rights to have the money refunded as THEY declined it.