Mortgage porting fail

goodchap

I need to move house, for several reasons. I have a fixed deal until November 2026 1.7%. for obvious reasons I want to keep it. I have a 5 star credit rating at 950. I own 81% of my house. so lots of equity. I went to Halifax and said can i port the morgatge they said re apply for it and we can transfer the rate on completion. I failed the soft credit check. Now All unsecured debt will be paid off with the equity and the loan to value would be 25% so I will own 75% of the new property with no unsecureed debt. I have no defaults on anything thats is why I have a 950 credit rating. This maked no sense their credit rating is faulty but they cannot tell me why. How can their money be less safe if I have no unsecured debt rather than a mortgage and unsecured debt. They are guranteed their money as no one is predicting negative equity with house prices falling 75/80%. What can I do?

K_S

@goodchap I can't pinpoint a specific issue but based on the limited info in your post, if I had to guess, I'd say it's the size of the background debt. Ignore the credit score number, but any other issues on your credit report, any background BTL mortgages, any financial connections not on the application?

The LTV doesn't always matter once you're below 60% LTV. It's all the same whether it's 59% or 10%.

Unfortunately, there's not much you can do without passing the Halifax credit-scoring (nothing to do with the Experian credit score) at soft-check DIP stage.

If you want to give it a final shot, I would recommend speaking to a good experienced broker (check with friends/family/colleagues), explaining the decline and seeing if they can tweak the DIP on some factors and check if it makes a difference. You could use the MSE recommended volume brokers (https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3) but they might not have the time to look at it properly. 

Good luck!

goodchap said:

I need to move house, for several reasons. I have a fixed deal until November 2026 1.7%. for obvious reasons I want to keep it. I have a 5 star credit rating at 950. I own 81% of my house. so lots of equity. I went to Halifax and said can i port the morgatge they said re apply for it and we can transfer the rate on completion. I failed the soft credit check. Now All unsecured debt will be paid off with the equity and the loan to value would be 25% so I will own 75% of the new property with no unsecureed debt. I have no defaults on anything thats is why I have a 950 credit rating. This maked no sense their credit rating is faulty but they cannot tell me why. How can their money be less safe if I have no unsecured debt rather than a mortgage and unsecured debt. They are guranteed their money as no one is predicting negative equity with house prices falling 75/80%. What can I do?

goodchap

Will try anything thanks

amnblog

A good broker may be able to sort this for you.

I cannot see how a volume broker [a big player interested in lots of the easy stuff] as per the link above would be the correct route though.

penners324

As lots of people will tell you on here. The credit score is meaningless.

What does the credit history say and check all 3 CRAs (there are free ways to access all of them) is all that matters.

amnblog

penners324 said:

As lots of people will tell you on here. The credit score is meaningless.

What does the credit history say and check all 3 CRAs (there are free ways to access all of them) is all that matters.

The credit reference agency 'score' may be meaningless.

The Halifax credit score is everything in this case. I suspect the answer lies not in the repayment history but in the debt tail being carried. 

goodchap

I have ack  feeling that the soft check just looked at unsecured debt without the added point that it would be cleared by the equity so saw a high debt being added to the risk. Which is clumsy and should be the case as it will all be cleared leaving their risk less.

Brie

You say Now All unsecured debt will be paid off with the equity but how do they know that?  There's no reason for them to simply take your word.  Is there anything else showing on the credit history that might cause concern??

kingstreet

Halifax does not like big balance unsecured credit such as balloon PCPs and multiple large balance card debts and will often decline even if marked to be repaid.