Halifax says NO mortgage if SEISS taken

bcopie

Has anyone had a Halifax mortgage approved after having taken SEISS? I got a AIP on Monday, my Ex had an appointment earlier and they said that they wouldn't give her one if a SEISS had been taken. But that they would put it to the underwriters. I called up to ask why I was offered one on the same figures and was told they must have forgotten to ask about the SEISS and that I wouldn't get one. I quote; "We can put it to the underwriters, but they are not giving mortgages to anyone who had been furloughed at the moment". I have had to cancel my offer on a house because of it.

I asked when I could try again and was told two years as that is how long they take for self-employed figures.

Just to clarify we currently have a joint mortgage with them and have had for 7 years. The rate is very high by comparison to a new mortgage. No missed payments or payment holidays. Both our credit scores are A. We have no debt (other than the mortgage). The loan to value for each of us would be around 50%.

Any ideas? It seems incredibly unfair, the SEISS only covered some of the income we lost because our shop was shut. 

K_S

@bcopie Sorry your post isn't very clear - is this a broker or a Halifax advisor? And what does furlough have to do with the case?

Thrugelmir

Lenders will be taking a macro view of the economy rather than making decisions at the micro level. The economic fall out out from Covid is far from over. Cautious criteria will no doubt remain in place until the fog lifts. 

[Deleted User]

SEISS and Furlough are 2 different things. In my experience Halifax dont lend to furlough but are fine if you have used SEISS in the past

BigSteveLondon

Deleted_User said:

SEISS and Furlough are 2 different things. In my experience Halifax dont lend to furlough but are fine if you have used SEISS in the past

To some lenders that’s not true at all. I have spoken with broker and some of the lenders are using either (or both) as a reason not to lend. 

We got AIP with Nationwide beginning of April. Their policy published didn’t mention furlough or SEISS, instead they just wanted the standard 2/3yr accounts. 11 weeks later, & endless questions that required 6days to respond, they declined an offer. If they had said so in week 1, or published their self employed policy, our broker would have taken it to another lender. 

My bank NatWest were open with me. Any person who has been in receipt of SEISS after June 2020 is not eligible for a mortgage. Furloughed people need 3-6months of payslips that have returned to pre furlough levels of earnings. 

So in answer to the OP, a broker can identify the lender for you. 

dunstonh

To some lenders that’s not true at all. I have spoken with broker and some of the lenders are using either (or both) as a reason not to lend. 

Some lenders yes.  Some are using it as a negative marker but if there are enough positives, they will consider.  Others are less concerned.
Deleted_User is a broker and would be aware of the situation more than most.

[Deleted User]

Seiss and furlough are factually 2 different things.  1 is for self employed people, the other is for employed people.   
The fact that some banks choose to apply the same or similar policy to both cases may be true. 
Halifax are not one of those lenders though 

Nervouslywaiting

Friends of ours have just been accepted by Halifax and he has claimed 2 of the SEISS grants.

BigSteveLondon

Deleted_User said:

Seiss and furlough are factually 2 different things.  1 is for self employed people, the other is for employed people.   
The fact that some banks choose to apply the same or similar policy to both cases may be true. 
Halifax are not one of those lenders though 

Got you, thanks for the explanation. 

This whole process is frustrating (& that’s me being polite). Underwriters over worked/stressed or incompetent I can tell which. Our broker having to remind them they have docs they’re asking for, or where to look on the docs for evidence they are seeking. It’s mad. 

But then I read on this forum a load of quick turnaround success stories. 

Maybe once this is done and we’re back in 5years to remortgage all will settle down. 

Thrugelmir

BigSteveLondon said:

Deleted_User said:

SEISS and Furlough are 2 different things. In my experience Halifax dont lend to furlough but are fine if you have used SEISS in the past

We got AIP with Nationwide beginning of April. Their policy published didn’t mention furlough or SEISS, instead they just wanted the standard 2/3yr accounts. 11 weeks later, & endless questions that required 6days to respond, they declined an offer. If they had said so in week 1, or published their self employed policy, our broker would have taken it to another lender. 

Broad lending policy will be a board level decision. There'll be constant monitoring of the lenders exposure and wider economic macro events by the risk management team. Criteria can change overnight as a consequence.  Underwriters simply work within the framework that they are given. 

csgohan4

Nervouslywaiting said:

Friends of ours have just been accepted by Halifax and he has claimed 2 of the SEISS grants.

But you don't know the ins and outs of their credit history. No two mortgage applications are the same

As Above criteria changes all the time depending on current risk appetite. Look at the criteria pre and post covid as an example