AIP with Halifax even though account was closed in the past?

Mortgage_99

Hello… I have a bit of a weird question hoping someone can answer 

How reliable is a DIP/MIP/AIP from Halifax. Basically me and my girlfriend were  recently given a Agreement in Principle after our broker applied for us through Halifax. They agreed and said they would just need payslips from us. 

My girlfriend has a default from 2018 but our broker put this all through when applying. 

The main problem is that she got her current account closed by Halifax and they gave her a 60 day period stating the account would be closed by the end of that time back in 2018. She didn’t get a Cifas/Hunter marker or anything.

My question is…would the background searchs for example her account being closed previously by Halifax some years ago be accounted for when an Agreement in principle was done…or can they turn around at the full application and can this then come up. From reading other people’s forum’s they seem to say that Halifax barely ever reject at full application after an AIP is passed if everything else is in line. 

I’m thinking that surely this would have flagged up at AIP stage and they wouldn’t have offered us it if this was a problem. We are worried that at full application they will turn us down.

[Deleted User]

They may well do. But your broker is the person to talk to as they have all the detail.

HeinzVarieties

The AIP may or may not include a check of their naughty list.  I suspect it probably won't but as zx81 says you need to speak to your broker.

Thrugelmir

Have you mentioned this to your mortgage broker? 

Mortgage_99

We let him know that the default was with Halifax and he said that would be no issue. I don’t recall mentioning about the bank account being closed and her being given 60 days though. How would the broker know if this is fine.

Also we initially applied for a DIP in October last year with Halifax through a broker which was declined…but now they accepted.

MattMattMattUK

Mortgage_99 said:

We let him know that the default was with Halifax and he said that would be no issue. I don’t recall mentioning about the bank account being closed and her being given 60 days though. How would the broker know if this is fine.

They would have access to the full criteria for mortgage applicants, this may include a requirement that Halifax have never closed an account held by that person before, it may include it but with a time limit or it may not include it at all. However if you did not tell them then they cannot take account of this.

Mortgage_99 said:

Also we initially applied for a DIP in October last year with Halifax through a broker which was declined…but now they accepted.

It could be one of many reasons, did you tell the current broker that the application using a different broker was declined?

Mortgage_99

MattMattMattUK said:

Mortgage_99 said:

We let him know that the default was with Halifax and he said that would be no issue. I don’t recall mentioning about the bank account being closed and her being given 60 days though. How would the broker know if this is fine.

They would have access to the full criteria for mortgage applicants, this may include a requirement that Halifax have never closed an account held by that person before, it may include it but with a time limit or it may not include it at all. However if you did not tell them then they cannot take account of this.

Mortgage_99 said:

Also we initially applied for a DIP in October last year with Halifax through a broker which was declined…but now they accepted.

It could be one of many reasons, did you tell the current broker that the application using a different broker was declined?

Oh okay thanks. We will inform the broker and see what he says.

The reason AIP was rejected in Oct is because credit scores were a lot worse but we took time and a couple months to improve it before a different broker(current broker) suggested that Halifax would be the correct lender with our circumstances.

We are thinking to just go ahead with it as we have got our MIP. If it was to get rejected..and a hard footprint was left would this make it difficult to obtain a mortgage with a different lender or would it not matter because it’s just 1 search. We haven’t had any hard credit search’s in the last couple years prior.

[Deleted User]

You weren't rejected because of your credit scores, but for not meeting lender criteria.

One search won't make any discernible difference.  But be open with your broker, so he can properly place your application.

porkisnotmeat

Mortgage_99 said:

MattMattMattUK said:

Mortgage_99 said:

We let him know that the default was with Halifax and he said that would be no issue. I don’t recall mentioning about the bank account being closed and her being given 60 days though. How would the broker know if this is fine.

They would have access to the full criteria for mortgage applicants, this may include a requirement that Halifax have never closed an account held by that person before, it may include it but with a time limit or it may not include it at all. However if you did not tell them then they cannot take account of this.

Mortgage_99 said:

Also we initially applied for a DIP in October last year with Halifax through a broker which was declined…but now they accepted.

It could be one of many reasons, did you tell the current broker that the application using a different broker was declined?

Oh okay thanks. We will inform the broker and see what he says.

The reason AIP was rejected in Oct is because credit scores were a lot worse but we took time and a couple months to improve it before a different broker(current broker) suggested that Halifax would be the correct lender with our circumstances.

We are thinking to just go ahead with it as we have got our MIP. If it was to get rejected..and a hard footprint was left would this make it difficult to obtain a mortgage with a different lender or would it not matter because it’s just 1 search. We haven’t had any hard credit search’s in the last couple years prior.

The bigger issue than a hard search is going to be potentially waiting weeks to find out that they're knocking you back because of this, with the subsequent damage that may do to the way your vendor views your reliability.

If it were me, and there were alternatives, I'd be seeking them.