Existing Halifax customer - 'referal' on a mortgage account?

yummymsmummy

Our 2yr fixed ends this month, and after a couple of months looking for a deal, we have decided to stay with Halifax and go for a 5.79% 5yr fixed. We've had this product reserved for over a month while we were looking elsewhere, and have been told its reserved until July.

As we're nearing the end of the month, we decided yesterday to phone and confirm with them, so they had enough working days to adjust the direct debit.

We've now been told there is a 'referal' on the account and so it cannot be processed, and none of the general customer service people seem to be able to help us. We're currently waiting for someone from the product transfer department to call us back.

Does anyone know what this 'referal' is and why its likely to have been put in place? We've only had our mortgage for 2 years, but have never been late with any payments and really dont understand whats going on. We're worried if this doesn't get sorted (after being assured we could leave it this late, and just phone to confirm) that our rate will jump up to 7.00%, and we'll have trouble affording the payments. If we'd known there'd be a problem, we could have switched companies - which now its obviously too late to do.

Can anyone shed any light on what the issue might be?

BenL

Have you got a good amount of equity in your home for them to consider keeping you on as a mortgage account holder?

They may try to do "a Northern Rock" and get you to leave to another lender.

yummymsmummy

Our mortgage is around £94k, the house was valued a few weeks ago at between £100-£110k. I think the LTV fell somewhere between 85-90%.

beecher

I'd phone them back rather than waiting for a call back. Ask them exactly what a referral means - do they mean it has been referred to someone in the product transfer department? Is there maybe a concern over the LTV? Can you access your account online and check what valuation is currently given on your home? When I log into my HBOS account it tells me how much equity they calculate I have (and it is hugely overstated but that's another story).

yummymsmummy

Hubby hasled the guy on the phone last night, and he claimed he didn't know what it meant, he just couldn't process it and we needed to call back this morning - which we did, and are now waiting for the call back as whoever he spoke to this morning couldn't help either.

I'm feeling quite cross about this; as i said in my original post this product was offered to us over a month ago, and since that time we have phoned twice to be reassured. Seems unfair and also extremely wrong that they can spring a problem on us a week before the end of the month?

UK007BullDog

Do it in writing and state the 2 times you called in. Dont sit back and think they will sort it.

Send a letter registered mail, stating you would like to reserve product xyz at xyz% as discussed on the phone on xx.xx.xxxx with person called xxxxxxx.

Is your credit record OK?

payless

My guess is the referral is likely as you have already spoken to someone and got the new deal in place and needs the right team to deal with it - are you sure it was only "reserved" and not actually actioned - did you get a new offer letter on this rate?

Tiddler_2

The "referral" is generally nothing to worry about. If it's what I'm thinking it is. I worked at the Halifax as an existing mortgage account administration manager up until about 8 years ago, when I left the Halifax altogether 3 years ago they were still using the same system so I doubt the process will have changed!!

Some administrative changes made on Halifax mortgage accounts, mean that the file is referred to a supervisor for confirmation that the action taken is correct. It is a back up system that stops someone changing something without it being checked.

It could be that someone has keyed something as simple as increasing a payment to be collected by direct debit, which doesn't match with the monthly payment that the computer system thinks should be collected.

And it should be actioned fairly quickly - they should be able to get someone to look at it straight away.

I would call them back and ask them to get a supervisor to review it as soon as possible as it may be affecting your future payments!! Also if the new product had been keyed onto your account it should be showing in the product history table.

It may be worthwhile going into your local branch as someone should be able to see it, and then they may be able to get a supervisor to review the account more quickly than a telephone operator!!