Halifax adverse credit

nattybuk

Hi all,

New poster but long time lurker.

So I and my partner have finally submitted our mortgage application with Halifax via our broker two days ago and now the waiting begins.

We are currently renting (only moving in at the end of last year) and we had lots of hassle with the landlords not finishing work on the house so we decided to look into purchasing. Fast forward to the present and my partner has received a £10k pay rise along with my pay rise last month. We thought sod it, we’re throwing money away renting let’s just purchase earlier.

Financial background

I don’t have poor credit never defaulted or missed payments, with recently moving that’s dropped my credit score and £18k worth of loans and 0% credit cards. All my loans and credit cards are paid minus a PCP contract. My partner, on the other hand, has awful credit, rated “very poor” on one of the credit searches. She’s had a default from the amazing team at Vodafone in 2017, they carried on taking money out of her account even when the contract ended and she told them not to renew. We’re currently with the ombudsman about this one, she was then hit by a default by a debt recovery late 2017 working on behalf on Vodaphone. So basically things currently weren’t looking too promising.

Broker

We reached out to a broker after being declined a mortgage in principle with the high steer lenders online, within an hour of explaining to the broker we had our MIP for £327,500 (winner!). We found our dream house offer accepted (the house hadn’t even made it onto the market we was that lucky). We will have a 15% deposit currently £1250 away but shown the broker proof of our current deposit and was happy to proceed after sending them absolutely everything including the statements showing all my loans and CCs have been paid off. I just need to wait a few more days until I can close the accounts down. He has said Halifax would be our best due to the adverse credit and not to worry (easier said than done).

MovingForwards

Do not close your credit cards down when paid off, just leave them as they show historic financial stability.

I know Halifax are a more relaxed lender out of the high street banks.

Good luck!

andyf1980

We got our mortgage with Halifax in similar circumstances to you. I think you'll be ok - it's not easy not to worry though is it!

nattybuk

Thanks for the replies

It’s extremely nerve racking but feeling more positive after reading many of topics on here with Halifax.

chanz4

Don't go ordering anything on new credit, Halifax will keep checking

nattybuk

Last question,

My car insurance is due next month. Normally pay up front but with all the moving fees this is going to be extremely tight.

Is it going to do damage either paying monthly or paying on an existing 0% credit card and paying it off within 6 weeks? The insurance is £800, currently credit card statement on Experian is showing £1200 (even though it’s paid off). Still waiting all the reports to update.

ScottishSaver14

Hi there,

Someone else might be able to clarify, but it would be worth holding off as long as you can regarding setting up your monthly car insurance. The offer/exchange might be done before then?

Depending on your car insurance cost, it may be worth taking a hit and paying it upfront if needs be. Better to do with an old washing machine a bit longer (or something else that isn't absolutely essential) than having issues at the last minute with the mortgage?

nick74

ScottishSaver14 wrote: »

Hi there,

Someone else might be able to clarify, but it would be worth holding off as long as you can regarding setting up your monthly car insurance. The offer/exchange might be done before then?

Few insurers seem to report monthly payments to credit reference agencies. I tend to change car insurance provider every year and the only one that has shown on my credit file is Admiral, and they only show up on Equifax, not Experian or Callcredit. I suppose the risk to an insurer of offering credit is relatively small as if you stop paying they just cancel the policy.

nattybuk

I’m looking at direct line as my partner has them and they don’t show up anywhere also they are much cheaper than admiral atm.

nattybuk

Halifax has come back to the broker asking for copies of our credit files to clarify some questions based on the credit files.

Starting to panic now, I hope there is a positive outcome.

nattybuk

Mortgage application was declined due to my partners missed payments:(

Stupidly she never set a direct debit up for them, now it’s going to cost us the house. Broker is hoping to run another mortgage lender.