Halifax are saying that they will change my application to 'not proceeding' - what does that mean?

Mish_Mash

I applied for a Halifax mortgage in August and was approved in early Oct. I have secured a mortgage offer than runs until the end of Feb 2023. 

I am still mulling over whether I wish to proceed with the mortgage or remain with my current provider so, although I have completed the valuation, submitted the legal docs etc, I haven't yet paid the £995 fee. That is the next step before completing the legal aspects of the remortgage.

I advised the mortgage advisor that I would make my decision by mid Nov and he said that wasn't an issue. However I have now received an email saying that if they don't hear from me in the next 7 days they will move the status of the application to not proceeding. They do say that the application can be reinstated by providing the outstanding information (the application fee being paid). 

Does this mean that they are basically pausing the application until I pay and that I won't lose the deal I had secured? So if I pay the fee later in Nov I will still be able to progress the remortgage on my currently agreed rate?

I would call them but it takes hours to get through.

Just looking for some advice. 

Thanks in advance. 

simon_or

You should've just added the product fee to the mortgage, none of these issues in that case. Call them and ask if you can add it to the mortgage rather than paying it upfront. That way the process is done and if you don't complete, you don't lose the fee and don't need to chase a refund.

If you do complete, you can always overpay £1k once you complete so you're not paying any interest on the fees added to the mortgage.

For the above reasons, my broker always recommends adding the fee to the mortgage, and (if I want to) paying it off when the mortgage starts.

Mish_Mash

simon_or said:

You should've just added the product fee to the mortgage, none of these issues in that case. Call them and ask if you can add it to the mortgage rather than paying it upfront. That way the process is done and if you don't complete, you don't lose the fee and don't need to chase a refund.

If you do complete, you can always overpay £1k once you complete so you're not paying any interest on the fees added to the mortgage.

For the above reasons, my broker always recommends adding the fee to the mortgage, and (if I want to) paying it off when the mortgage starts.

Thanks Simon. I have previously asked if I could add the fee to the mortgage (after the initial application) and was told no. No changes are allowed following the application being submitted. You live and you learn. 

I am assuming though, that their email means the application is just on hold and can be reinstated if and when I pay the fee. That’s what the wording indicates. Otherwise what would be the point of them saying the offer was valid till Feb.