Halifax mortgage application multiple hard credit searches

2cojones

Hi, I wonder if anyone can offer any insight into what happened to me recently. I received my AIP from Halifax on 8 Oct through my broker, that resulted in one soft credit search (quite normal). I found a lovely house, eventually an offer was accepted so I asked my broker to submit the full mortgage application on Oct 29. My application was referred to the Halifax underwriters and on Oct 31 I was informed by my broker that I had been turned down for a mortgage due to a historic (2015) default on my credit file. So a huge disappointment as my broker was confident that it would go through despite this negative mark on my credit file. I phoned Halifax and they confirmed that they were satisfied with my affordability for the loan, however they were not willing to offer me ANY mortgage product. So I decided to look to other lenders.
A few days later I received two credit file alerts from Experian and Equifax Credit Agencies. Upon checking these changes I discovered SIX hard searches made by Halifax on my Equifax credit file. I queried these and was told that 3 of the hard searches were for my current address and the remaining 3 hard searches were for my previous address. I asked Equifax to send a dispute case to Halifax to hopefully get all but one hard search removed. These multiple searches have now had a negative impacted on my Equifax credit score. My Experian score has also dived even though it looks like Halifax only performed one hard search (no other negative influences recorded). My plan to apply for a mortgage with a different lender has now been put on hold until this issue has been resolved as my credit score is not an accurate reflection of where I am.
I lodged a complaint with Halifax on 5 Nov about these multiple searches and apart from an automated acknowledgement email I heard nothing from them. I called them on 8 Nov and was told I will be receiving a letter from them on 11 Nov. I eventually received an acknowledgement letter on 14 Nov but stating that my complaint has not been assigned a Complaint Manager and this could take anything up to 8 weeks ! Not impressed !! I feel that this is very unfair as they are now in effect holding me back from taking my mortgage search forward. Has anyone else experienced this ? Any advice would be much appreciated. (sorry about the long read !)

foxy-stoat

Good news, your credit score is only seen by you so dont worry about the numbers. Its the history that is important. If the default is settled then you should be able to find a lender via a broker.

[Deleted User]

2cojones wrote: »

Hi, I wonder if anyone can offer any insight into what happened to me recently. I received my AIP from Halifax on 8 Oct through my broker, that resulted in one soft credit search (quite normal). I found a lovely house, eventually an offer was accepted so I asked my broker to submit the full mortgage application on Oct 29. My application was referred to the Halifax underwriters and on Oct 31 I was informed by my broker that I had been turned down for a mortgage due to a historic (2015) default on my credit file. So a huge disappointment as my broker was confident that it would go through despite this negative mark on my credit file. I phoned Halifax and they confirmed that they were satisfied with my affordability for the loan, however they were not willing to offer me ANY mortgage product. So I decided to look to other lenders.
A few days later I received two credit file alerts from Experian and Equifax Credit Agencies. Upon checking these changes I discovered SIX hard searches made by Halifax on my Equifax credit file. I queried these and was told that 3 of the hard searches were for my current address and the remaining 3 hard searches were for my previous address. I asked Equifax to send a dispute case to Halifax to hopefully get all but one hard search removed. These multiple searches have now had a negative impacted on my Equifax credit score. My Experian score has also dived even though it looks like Halifax only performed one hard search (no other negative influences recorded). My plan to apply for a mortgage with a different lender has now been put on hold until this issue has been resolved as my credit score is not an accurate reflection of where I am.
I lodged a complaint with Halifax on 5 Nov about these multiple searches and apart from an automated acknowledgement email I heard nothing from them. I called them on 8 Nov and was told I will be receiving a letter from them on 11 Nov. I eventually received an acknowledgement letter on 14 Nov but stating that my complaint has not been assigned a Complaint Manager and this could take anything up to 8 weeks ! Not impressed !! I feel that this is very unfair as they are now in effect holding me back from taking my mortgage search forward. Has anyone else experienced this ? Any advice would be much appreciated. (sorry about the long read !)

The lenders take the hard data and perform their own credit scoring process to it. So the number you see on experian is only designed to make you think you should buy something from experien to increase the number that no one else cares about.

These hard searches would not stop you getting a mortgage from someone else.

Also, you may be the first person i have ever heard of that has had a halifax credit decline after having an accepted AIP. I have been a broker for many years and even used to work as a mortgage advisor for Halifax and never came across it.

There is a question on the AIP that is something like 'has the applicant had any defaults, CCJ's or been behind on any unsecured commitments in the last 5 years'. As long as it was answered honestly I was always told it wouldn't be overturned. Have you seen a copy of your application to see if it was declared? Otherwise some other information must have changed between AIP and App that made them rescore the application

2cojones

Thank you for posting advice foxy-stoat & Deleted_User. Great news about the credit scores not being seen by lenders !

My broker was equally stunned at the decision. I am a Contractor so my specialist broker based my income on my contract rate to maximise my income (I passed the affordability check). The mortgage was for £258k, and the LTV 85%. My credit ratings with Experian and Equifax are 'Fair' and 'Good' respectively. The account which I defaulted on in July 2015 was settled in 2017 (and there were a few missed payments in 2017 too). Following this I've been working very hard to improve my credit rating since, and I recently paid off all my existing credit cards and loans (currently debt -free) following advise from two different brokers.

I will ask to see a copy of my mortgage application to see what was submitted. As the Halifax would not provide specific details about which aspect of my credit file led to their decision I don't really know what to concentrate on to improve my credit file. I did ask if I could be considered for a different product/lower amount but I was told no.

Any suggestions on where I should look for a suitable lender ?

amnblog

Surely your broker should be seeking a new lender

2cojones

Thanks for post amnblog. My broker has told me that there are no more options to pursue with my income based on contract rate rather than SA302's. Reading through the advice given I realise that I have missed a few things in my reply (sorry!). I am assuming the only reason for the mortgage decision is the default in 2015 and missed payment (2017) only, so I suppose if I were to consider going back to the Halifax again in future I would have to wait until these events are 6 years old (2023) and dropped off my credit file.

amnblog

Your Broker is saying Halifax is the only lender that works off of Day Rate?

If so, that is not the case (assuming you have been contracting at least 12 months). I can think of half a dozen including some than can live with credit bumps.

2cojones

Yes, that's what he's saying. I've been contracting for 25 years and my current one has been since May 2017, on an hourly rate however (a regular 40 hr week, even have an agency reference to back this up). He told me that only Kensington accept credit bumps but they don't calculate income on contracts, only on SA302's. Calculating on this he said the most I could borrow would be £118k, which just doesn't seem right.


I appreciate the advice amnblog. As you are no doubt aware Contractor brokers apply fees for applying for AIP's and mortgage applications which is fine if it leads to an offer (realise they can't perform miracles though)

[Deleted User]

I am 99% sure there is more to this than we know as for a broker to say Halifax are the only lender able to deal with credit bumps and calculate day rate then i dont know how he/she is actually able to get through a day. Must be more to it.

I take it you cant meet affordability using just what is on the sa302?

Also, charging fees for AIP is borderline insane. You dont need a contracting broker, just a decent experienced normal broker.

Thrugelmir

2cojones wrote: »

I recently paid off all my existing credit cards and loans (currently debt -free) following advise from two different brokers.

Where did the money suddenly materialise from? Asking rhetorically. If it was a significant sum may raise questions at an underwriting level.

mwx

I have also applied for a mortgage from Halifax recently and four hard searches appeared on my account too. Fortunately I was accepted for a mortgage, but my credit score also took a hit. I'm not sure if this is normal but I thought I would let you know that I too had a similar experience.

I really hope you are able to reapply soon, it doesn't seem fair!