Halifax Mortgage Appeal

justme200194

We are looking to move house and applied for a mortgage through Halifax.

AIP received 16-05-20

Offer accepted on a house 08-06-20
Full mortgage application submitted 18-06-20
Mortgage declined by Halifax 08-07-20
Appeal submitted 14-07-20

We submitted a joint application based on only 1 years accounts as a limited company. (Partner has been self employed for 10+ years) Our mortgage broker suggested we try Halifax as they accept one years Accounts for self employed. Unfortunately we were declined based on myself only having been self employed for one year and the underwriter not being able to work out how I have gone from a relatively low wage as an administrator to self employed on a larger wage. Our MB has appealed as he said the underwriter should only be basing the application on my years accounts as self employed/company shareholder and has sent a letter, including a letter from a company we contract to to evidence future works and value of contracts involved etc. Everything else, credit check, all fine. 

We have a 20% deposit but have offered to stretch an extra 15k to 25% if this would help. 

Are the chances slim of the underwriter changing their decision?! So frustrating as we know it’s affordable for us, we aren’t even asking to borrow the full amount we could borrow according to the AIP either (Almost 60k less actually)
Absolutely hate the waiting, MB said 7-10 days until we hear back. Is anyone else been/currently in this position?! I’m finding it very stressful and really don’t want to have to let our buyer down.

Kiwistrawb1990

The underwriter made an error with our application, mistaking a 4 year old default for a DMP. 
I got evidence to state it was a default and I'd never been in a DMP (clean credit file since the default) and we were told it would be a successful appeal due to the reason it was declined.
However the underwriter refused to change their decision, it was unfair and we have a complaint going in as the only reason for the decline was the fictitious DMP. 
That cost us 2 weeks altogether and undue stress. 
We now have a mortgage with Natwest at a better rate but my advice would be don't bank on them overturning the appeal. Ours was their error yet they refused to correct it. 
Funnily enough I had an offer for a loan pop up on my halifax banking app the other day, offering me exceptional rates and a great term because I have paid close to 3k in every month for the last 3 months. The irony. I'm also moving banks as the service was shocking. 

justme200194

Kiwistrawb1990 said:

The underwriter made an error with our application, mistaking a 4 year old default for a DMP. 
I got evidence to state it was a default and I'd never been in a DMP (clean credit file since the default) and we were told it would be a successful appeal due to the reason it was declined.
However the underwriter refused to change their decision, it was unfair and we have a complaint going in as the only reason for the decline was the fictitious DMP. 
That cost us 2 weeks altogether and undue stress. 
We now have a mortgage with Natwest at a better rate but my advice would be don't bank on them overturning the appeal. Ours was their error yet they refused to correct it. 
Funnily enough I had an offer for a loan pop up on my halifax banking app the other day, offering me exceptional rates and a great term because I have paid close to 3k in every month for the last 3 months. The irony. I'm also moving banks as the service was shocking. 

That is awful! And doesn’t fill me with much hope sorry you had such a bad experience with them, seems they just look for reasons to decline, I am also convinced they will find any reason however small to not change their decision with ours. Glad to hear you managed to get a mortgage elsewhere, unfortunately if our appeal isn’t successful we will be unable to move. Our only other option for a mortgage would be an independent lender and their rates are horrendous. (3x that of high street) 

Kiwistrawb1990

justme200194 said:

Kiwistrawb1990 said:

The underwriter made an error with our application, mistaking a 4 year old default for a DMP. 
I got evidence to state it was a default and I'd never been in a DMP (clean credit file since the default) and we were told it would be a successful appeal due to the reason it was declined.
However the underwriter refused to change their decision, it was unfair and we have a complaint going in as the only reason for the decline was the fictitious DMP. 
That cost us 2 weeks altogether and undue stress. 
We now have a mortgage with Natwest at a better rate but my advice would be don't bank on them overturning the appeal. Ours was their error yet they refused to correct it. 
Funnily enough I had an offer for a loan pop up on my halifax banking app the other day, offering me exceptional rates and a great term because I have paid close to 3k in every month for the last 3 months. The irony. I'm also moving banks as the service was shocking. 

That is awful! And doesn’t fill me with much hope sorry you had such a bad experience with them, seems they just look for reasons to decline, I am also convinced they will find any reason however small to not change their decision with ours. Glad to hear you managed to get a mortgage elsewhere, unfortunately if our appeal isn’t successful we will be unable to move. Our only other option for a mortgage would be an independent lender and their rates are horrendous. (3x that of high street) 

In that case its definitely worth trying to appeal, I'll keep everything crossed for you. I think we were just really unlucky with the underwriter we were allocated. 

justme200194

Kiwistrawb1990 said:

justme200194 said:

Kiwistrawb1990 said:

The underwriter made an error with our application, mistaking a 4 year old default for a DMP. 
I got evidence to state it was a default and I'd never been in a DMP (clean credit file since the default) and we were told it would be a successful appeal due to the reason it was declined.
However the underwriter refused to change their decision, it was unfair and we have a complaint going in as the only reason for the decline was the fictitious DMP. 
That cost us 2 weeks altogether and undue stress. 
We now have a mortgage with Natwest at a better rate but my advice would be don't bank on them overturning the appeal. Ours was their error yet they refused to correct it. 
Funnily enough I had an offer for a loan pop up on my halifax banking app the other day, offering me exceptional rates and a great term because I have paid close to 3k in every month for the last 3 months. The irony. I'm also moving banks as the service was shocking. 

That is awful! And doesn’t fill me with much hope sorry you had such a bad experience with them, seems they just look for reasons to decline, I am also convinced they will find any reason however small to not change their decision with ours. Glad to hear you managed to get a mortgage elsewhere, unfortunately if our appeal isn’t successful we will be unable to move. Our only other option for a mortgage would be an independent lender and their rates are horrendous. (3x that of high street) 

In that case its definitely worth trying to appeal, I'll keep everything crossed for you. I think we were just really unlucky with the underwriter we were allocated. 

Thank you! 

justme200194

 ... Bump 🙃

KAP0365

@Kiwistrawb1990 how long did your application with NatWest take? We have applied and apparently passed credit checks yet my husband has a couple of old defaults (one 9 years and the other nearly 7 years) and we have applied direct. We are home movers but worried it will now decline even though they have dropped off his report? It didn’t ask us to declare anything in the initial application but is asking now and I’m assuming he will still have to declare even though they are old

Debtfreestudentnurse

KAP0365 said:

@Kiwistrawb1990 how long did your application with NatWest take? We have applied and apparently passed credit checks yet my husband has a couple of old defaults (one 9 years and the other nearly 7 years) and we have applied direct. We are home movers but worried it will now decline even though they have dropped off his report? It didn’t ask us to declare anything in the initial application but is asking now and I’m assuming he will still have to declare even though they are old

Defaults fall off your files after 6 years. they won't be visible to lenders

KAP0365

@Debtfreestudentnurse he still has to declare them though, yes? X

MovingForwards

KAP0365 said:

@Debtfreestudentnurse he still has to declare them though, yes? X

Only if asked.

Examples:
1. Do you have any defaults, CCJs.....etc in the last 6 years - No.

2. Have you ever had any defaults, CCJs.....etc - yes.

KAP0365

@MovingForwards replied to you on other thread. Phoned NatWest and they said it doesn’t matter as they are over 6 years old and settled, so to continue with the application and not to worry about rescinding the agreement and changing it...