Remortgage with Halifax declined is it worth appealing?

solojedi2013

Hi All,

I am having a issue trying to secure a remortgage with the Halifax basically used a broker FAC, seemed very good. He completed a DIP in my and my wife's name which Unforntantley failed but said it passed in my name. He advised to look at other lenders but would be subprime Magellan 3.14% with £2,500 lender fee plus broker fee of £750 or alternatively we could proceed with Halifax in just my name at 1.8% no lender fee and a £500 broker fee but this would mean my wife would need to come off the deed. I discussed this with my wife and we agreed it made sense for her to come off the title and to go back on when we could remortgage which would be 2 years without any early payment charges.

Anyway everything was going fine until we where told she would not be allowed to live in the property after completion. This raised some concerns as we where not aware of this, I raised it and asked if this could be changed but Halifax would not budge. So we decided to agree to her moving out of the property to my mother's as would be having some building work carried out at the house and could all stay at my mum's who live alone in a fairly big house on her own.

Again we provided a forwarding address and everything was fine . We where due to complete on the 27th of June but where told it had to go to the underwriters for approval.

They declined the application and said we tried to circumvent their lending policy!

I am so stressed out now due to this and desperately need to find a solution and am considering appealing. Is this something I should do or just go the subprime lender.

Any advice, experience any one can offer would be greatly appreciated.

Many thanks for reading.

Typhoon2000

Are you borrowing more money? If not, it would be easier to get a retention product with your existing lender, rather than remortgaging.

Samsung_Note2

solojedi2013 wrote: »

Hi All,

I am having a issue trying to secure a remortgage with the Halifax basically used a broker FAC, seemed very good. He completed a DIP in my and my wife's name which Unforntantley failed but said it passed in my name. He advised to look at other lenders but would be subprime Magellan 3.14% with £2,500 lender fee plus broker fee of £750 or alternatively we could proceed with Halifax in just my name at 1.8% no lender fee and a £500 broker fee but this would mean my wife would need to come off the deed. I discussed this with my wife and we agreed it made sense for her to come off the title and to go back on when we could remortgage which would be 2 years without any early payment charges.

Anyway everything was going fine until we where told she would not be allowed to live in the property after completion. This raised some concerns as we where not aware of this, I raised it and asked if this could be changed but Halifax would not budge. So we decided to agree to her moving out of the property to my mother's as would be having some building work carried out at the house and could all stay at my mum's who live alone in a fairly big house on her own.

Again we provided a forwarding address and everything was fine . We where due to complete on the 27th of June but where told it had to go to the underwriters for approval.

They declined the application and said we tried to circumvent their lending policy!

I am so stressed out now due to this and desperately need to find a solution and am considering appealing. Is this something I should do or just go the subprime lender.

Any advice, experience any one can offer would be greatly appreciated.

Many thanks for reading.

Seriously...ive just checked the date and its Not April 1st...:eek:

solojedi2013

Hi,

Thanks for the quick replies.

Typhoon2000
I am trying to raise extra funds for a rear extension I've already started. Also with Whistletree on 4.3% , they have said I maybe eligible to switch but need to go through a full income/expenditure , booked a telephone call for Wednesday however they wont lend anymore.

Samsung_note2
I was very surprised to be told my wife needed to move out on completion and was advised this was standard practice just in case she claims squatters rights if I defaulted and they wanted to repossess the property even though they asked her to sign her rights away to the property in case of my death, repossession etc she would not have a leg to stand on. Which she signed the underwriter said the the following in a email to the broker. Is she correct in saying I am doing something incorrect. As I think I meet all there requirements, literally refused to pay when solicitors requested release of funds...everything else has been done.



Good Afternoon

I have considered your proposition for the app and his wife to move from the property to his mothers whilst works carried out and then for her to not return until they can remo again and am not happy with this proposition.

The decision remains declined, this lending is not within our lending policy and I am not willing to accept a proposition which looks to circumnavigate our lending policy,

Many thanks

Regards

bertiewhite

solojedi2013 wrote: »

Anyway everything was going fine until we where told she would not be allowed to live in the property after completion.

Were you given a reason?

I've been with my wife for 8 years now, and we've been married for 5 of them. In the time we've been together I've had 2 houses with 2 mortgages solely in my name and not once have we been told she can't live in the house.

solojedi2013

Thanks Bertiewhite...

Please see the underwriters reason below. Do you think I should ask for a copy of their lending policy or escalate to a manger maybe. Struggling to make sense of it all.


Good Afternoon

I have considered your proposition for the app and his wife to move from the property to his mothers whilst works carried out and then for her to not return until they can remo again and am not happy with this proposition.

The decision remains declined, this lending is not within our lending policy and I am not willing to accept a proposition which looks to circumnavigate our lending policy,

Many thanks

Regards

bertiewhite

solojedi2013 wrote: »

Thanks Bertiewhite...

Please see the underwriters reason below. Do you think I should ask for a copy of their lending policy or escalate to a manger maybe. Struggling to make sense of it all.

I'm not sure, my ex wife was never on the mortgage either (mainly because her credit history was bad) and we had no problems. Maybe it's just that lender?

I've had mortgages with Barclays, Woolwich, Northern Rock & Virgin and like I say, none of them have ever said that I couldn't have a mortgage solely in my name for a house that both of us would be living in. I have always had to state that my wife would be occupying as well.

It's as if the Halifax are saying they only give joint mortgages. What about other occupants of houses that are resident, such as children?

I'm just wondering if it's because you initially made a joint application whereas I've always made applications in my name from the start.

kingstreet

Halifax was always the wrong lender for this.

Is your broker going to put it right and place it with a lender which would accept such a proposition?

solojedi2013

Thanks Bertiewhite apprieciate your insight.

It could be because the broker applied in both names, and then switched it just in my name but they where aware of this when I queried why my wife had to move out. They explained it was normal practice and a requirement by law! So I discussed our options with my wife and we decided we could move out and stay at my mother's. This would mean the issue with my wife not remaining as a occupier would be resolved.

Thanks, Kingstreet
The broker has not offered any other options other then Magellan who i am not comfortable with as the rate is much higher and their fees are £2500, he said my credit rating has been affected due to the number searches carried out.

I tried another broker who said Natwest would be fine with my situation, but that has been declined this afternoon.

I am going around in circles , the underwriter is making this very difficult as when I queried my wife having to move out they said it was their policy which meant that if I am solely named on the property she can't stay there.

We have now agreed she will move but they are now saying I am trying to circumvent their policy when I am trying to meet the requirements they have set.

Can I fight my case or it a case of their decision is final.

It's left me exhausted and in a worse situation than I started with.

haras_nosirrah

The difference is that your wife was formerly on the deeds and is now coming off. Therefore half the house is her equity. If she had never been on the deeds it would be different as she would have never 'owned' the house. Her rights are much stronger having been a former owner which is why halifax won't allow her to come off the deeds and stay in the property.

Thrugelmir

What's wrong with your wife's credit record? Therein lies the root of your problems. As you are married you are have become financially interlinked in law. Unfortunately not possible to become separate individuals when it's convenient to you. Life isn't that easy.