Mortgage declined - appeal

benkil

Hi,

Halifax have just contacted our broker and said they have declined our application because the information provided about our credit card on our application doesnt match my credit file.

When I submitted the application I stated my credit card balance was £2k as I had reduced it from £4k about a week before.

Ive checked my credit file and my balance still shows as £4k.

My broker is going to appeal and provide them with a statement showing the reduced balance.

Would this be sufficient to overturn the decline?

Thrugelmir

An underwriter may wonder where £2k to reduce the debt suddenly materialised from.

benkil

My family gifted me some money towards the house deposit. I used some of this to clear some of the credit card.

Ive got a signed document from my family and proof of where the funds came from to show Halifax where the money came from.

Ive also got a credit card statement showing the balance being £2k.

My broker has told me not to worry because its not a 'firm decline' and shes confident that when we go back with proof it should be fine.

Does this sound realistic?

kwame41

Perhaps you should have waited for your file to update showing the correct balance.


It might be that simple.

MaudeLebowski

In a previous life, I worked for Abbey for Intermediaries and we regularly had this situation. Broker's client's paying off debt that hadn't yet updated on the credit report. I wouldn't be too concerned. Good idea to include information on where the money to pay the debt came from though - we'd always ask for that to cover Anti Money Laundering regs.

spadoosh

Your broker has all the details and understands your situation better than anyone on here. There in a better place to advise you than anyone on here. If they dont think its a big problem, its probably not a big problem. They have no incentive to lead you on but every incentive to try and ensure you get a mortgage (providing payment is upon receipt of mortgage).

kingstreet

This is standard wording when we are asking for permission to do an agreement in principle;-

"If you have any credit cards which are repaid in full each month or have recently reduced/repaid any credit; please let us know so we don’t include the balances in affordability calculations.

Issuer, holder and latest couple of months’ balances for each card please, as the credit system does not work in “real-time” and lenders may see out of date data when searching your credit history."

You'd be amazed at the number of people who think they make a payment today and the system shows it tomorrow. Typically, it can take a month or longer to update and many mortgage lenders only take their CRA updates once a month.

If you simply enter it and hit "to be repaid on or before completion" most lenders ignore it and the OP would have had no problem.

benkil

Good news. Mortgage broker spoke to the lender and clarified that the balance had been reduced and now the mortgage offer is on its way!

Thanks for everyone’s responses it’s appreciated