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Revolution Brokers recognise that many mortgage applicants will opt for a bank they already use regularly or a well-known high street name.
Halifax is one of the most prominent mortgage lenders in the UK. However, thousands of customers find out they don't meet the eligibility criteria and need to apply elsewhere.
This guide is intended to assist applicants who have been rejected for a Halifax mortgage and outlines some of the reasons Halifax may have turned down your borrowing request.
The key takeaway is that, even if a mainstream bank refuses your mortgage request, there are many other options and specialist lenders who are very likely to be able to help.
For tailored advice with your application, please contact the Revolution team at 0330 304 3040, or email us at email@example.com.
Every mortgage lender has a range of criteria and policies. In many cases, you can avoid a rejected application by working with an experienced broker who can identify which lenders have policies that will prohibit them from offering you the lending you need.
Here are some of the most common reasons for Halifax to reject an application:
Halifax offers a few first-time buyer mortgages with higher LTV caps. However, they will usually lend up to 85% of the property value for all other applications as an absolute maximum.
Therefore, you need a minimum 15% deposit to get past an initial assessment. First-time buyers will usually require at least a 10% deposit.
Most UK banks have strict policies about offering mortgages to people with even minor issues on their credit report.
Revolution often works with clients who have received an agreement in principle but have had their full mortgage application rejected. This situation is common since the more in-depth credit searches will throw up issues usually missed on an initial soft credit search.
Another standard stumbling block is that high street banks need any self-employed mortgage applicants to have at least a year's worth of trading history and are more likely to lend if you have filed accounts for at least the last two years.
Halifax will generally offer a ceiling of 4.75 times your annual income as the maximum mortgage value. If your application has been declined due to affordability, it usually means that you have applied for a higher value.
This process also accounts for outgoings and expenses.
Halifax will rely on the valuation report according to the surveyor's opinion even if you feel your property purchase offers exceptional value for money. Many rejections are because the property is 'non-standard' - that might mean it has a timber frame, for example.
Other issues arise if the property has been built in a high-risk area or has been down valued at lower than the price you have agreed to pay for it.
The good news with any of these issues is that there is no reason you won't find competitive lending elsewhere. For example, many lenders offer up to five or even six times your income as a mortgage cap.
Niche lenders are comfortable lending against non-standard properties, and different mortgage providers use alternative calculations to work out affordability.
Suppose you have been turned down for a mortgage from Halifax. In that case, the crucial action is to consult Revolution Brokers as a whole-of-market broker to identify lenders whose criteria align with your borrowing needs.
Being turned down for lending can be disheartening, but there are plenty of things you can do to move forward with confidence.
Here are our top tips to ensure your property purchase can proceed:
Our independent mortgage experts will assess your circumstances and the rejected application to advise on the best steps forward and which lenders or mortgage products will most likely be approved.
Mortgage applications with Halifax can take up to three months to be approved. This period depends on how long the legal processes take, your circumstances, and any issues around the mortgage-lending offer.
It's unlikely that Halifax will accept any mortgage application based on gambling income. However, many specialist lenders offer borrowing to professional gamblers.
It is always crucial to work with a whole-of-market broker if any proportion of your income relates to gambling wins, as the majority of mainstream banks will reject this as a viable income stream.
Having your valuation returned successfully doesn't mean that Halifax will approve your mortgage. It is less likely they will retract an offer if the valuation didn't throw up any issues, but there is still a possibility they will turn down the complete application on another basis.
You can always appeal if a bank rejects your mortgage application. Usually, that process means putting together an appeal in writing and sending it to the Halifax underwriters.
Appeals can be based on incorrect information or incorrect decisions. Still, you'll need a rock-solid case to try and persuade a high street lender to reconsider a refusal they have already issued.
Halifax will usually run a soft credit check before making an offer, in principle. This process will not provide them with a full credit report.
When you come to make a complete application, a hard check is carried out. If there are any credit issues on the report, even if they are a few years old, this can mean the application is refused at this later stage.
There isn't a fixed credit score that you need to get a mortgage with Halifax. However, they do use credit scoring as part of the applicant assessment process.
All high street banks and mortgage providers have rigid criteria that they are rarely able to negotiate around. Therefore, if you don't tick one box, it's highly likely your application will be automatically refused.
The best option is to consult an independent broker who can make professional recommendations about the lenders who are most likely to approve your application successfully.
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The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature. We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.
Revolution Brokers understands that mortgages can be complex and confusing!
Ask us any question you might have, and one of our skilled consultants will come back to you as quickly as possible.