Halifax criticised for adverse stance

Ian Crampton, sales director at Ferndown Limited, said he had come across a number of lenders who had refused to offer deals to applicants due to ‘affordability and credit scoring reasons’, with Halifax in particular coming under fire for declining a remortgage application for this reason.

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Crampton explained: “The clients concerned had two large unsecured loans, two credit cards up to their limit, and a secured loan with Halifax, which, on completion and consolidation, would have reduced their outgoings by £450 per month and reduced their mortgage term by four years. Bearing this in mind, it made me question Halifax’s affordability response.

“The reason it declined the case was down to a few late payments on the client’s credit cards and a parking ticket from years ago that had acquired a CCJ for £100 when my client moved and didn’t forward his new address to the DVLA. My clients both have bank accounts with the Halifax and we hoped it would appreciate their situation as 90 per cent of their current commitments were sold to them by the Halifax in the first case.

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“As brokers, we want quick responses and fewer bottlenecks in the system. However in situations like this, I think lenders should appreciate the benefits of good PR.”

Despite appealing on three occasions against the decision, Crampton was advised to reapply in six months as the application should then be successful. He was also told that Halifax’s automated lending decision is a fair reflection of risk, and therefore the case falls short.

Carol Wright, Halifax spokesperson, said: “Our lending criteria is based on affordability and we assess each case on the individual’s financial capability to repay.”