See how we can help

Get started online

Refused by Halifax

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Feb 13, 2023

Refused for a mortgage by Halifax

You can feel discouraged if Halifax declines you for a mortgage or thinks they will. We are here to help you! The right mortgage broker can help you get approved with Halifax or another mortgage lender that is a better match for you.

Remember that getting declined by Halifax does not mean you are out of luck with your mortgage plans. This guide will help you understand why.

Speak with an independent mortgage broker like ourselves. We offer free mortgage advice and have several mortgage lenders with different lender criteria.

We will ensure to match you with a mortgage lender who will give you the best mortgage offer and mortgage approval.

Use our online mortgage calculator as a guide for your monthly repayments now

We are expert mortgage brokers

We have access to over 200 lenders in the UK to get you the best rates

Get your Quote

What are the requirements for Halifax to be a mortgage lender?

High street mortgage lenders have strict lending criteria and will reject any application that isn’t in line with their lending guidelines. Halifax is known for its ability to accommodate first-time buyers, low-income customers, and people with credit problems.

Remember that specialist lenders may be more flexible than traditional high-street lenders regarding customers who fall within these niche categories.

Halifax is not considered a specialist lender. Contact us today for tailored advice.

What should you do if Halifax has declined to give you a mortgage?

Here are some steps to take if you have been declined for a Halifax mortgage.

  1. Refrain from the urge to apply again immediately
    It’s tempting to rush to another lender to get a better outcome. But it’s important not to do that. You can damage your credit file by applying for too many loans in a short time. This could even make it harder to get a mortgage.
  2. Take the time to gather all the facts about the rejection
    Ask your lender what the issue is in the interim. This will allow you to be ready for it when you apply with another lender or during a re-negotiation. Ask for a copy of the issue raised during surveys. Download all your credit reports to see if bad credit was a problem.
  3. Send us an enquiry to find the perfect mortgage broker for you.
    If you have been rejected by Halifax or are afraid they will reject you, it is a good idea to speak with a mortgage broker.
    We will match you up with a broker with the right experience and expertise to convert your rejection into approval.
Get started online

If you need expert advice, contact us immediately

  • Minimum deposit of 10%
  • Some form of bad credit is possible
  • Self-employed with only one year’s account
  • You would like to borrow more than 4.5x your salary
  • You are buying a non-standard property
  • Your risk appetite is higher, e.g. gambling

Get Expert Help here today.

Common reasons Halifax declined mortgage applications

  • Too little deposit

Except for first-time buyer products, Halifax typically offers residential mortgages with a maximum loan to value (LTV) ratio over 85%. This means that you will need a mortgage deposit of at least 15%.

Halifax might refuse to accept customers with less than this amount. However, first-time buyers can now apply for products up to 90% LTV.

  • Credit

Halifax may have offered you an agreement in principle (AIP) but declined your full application because of a bad credit file. After completing their initial checks and conducting a soft credit search, they may consider granting you an AIP. Underwriting involves a hard credit check, revealing the extent of credit problems.

Halifax may offer mortgages to customers with all types of poor credit. They may reject borrowers with CCJs or IVAs, mortgage arrears, and bankruptcies.

  • There is a chance that Halifax will decline your mortgage application if you have recently become self-employed. Self-employed applicants must have 12 months of trading experience before qualifying for a mortgage. They prefer customers with accounts that have been in place for at least two years.
  • Affordability issues

Halifax caps residential mortgage borrowers’ lending at 4.75x their income. If they decline you for a mortgage because of affordability, their combined earnings would likely not equal the amount they needed to borrow when the calculation was made. You may have considered outgoings, particularly if you have significant financial obligations.

  • Problem with property

Halifax might decline a mortgage application after valuation if deal-breaking property problems were found during surveyor checks. Halifax will accept various types of build, including 100% timber construction and Mundic block. However, the mortgage application could be declined if non-repaired prefabricated reinforced concrete was detected during surveys.

Other issues that might arise during surveys, such as the property being built near a mineshaft or contaminated land, could have an impact. Still, Halifax will likely assess the severity of it individually after all the facts are weighed.

  • Other reasons

Your Halifax mortgage application could be denied for many reasons. There are many other reasons why mortgage applications can be rejected.

The steps you should take if Halifax refuses to approve you for reasons we haven’t listed are the same. Finding the right mortgage broker will increase your chances of approval. Remember that being rejected by Halifax may end up being positive because the right broker might be able to find you a better deal.


Get started online

How a Mortgage Broker can help you with these issues

If you feel that Halifax will decline your application for a mortgage due to any of these issues, remember that you can still get financing approved with the help of a qualified mortgage broker.

Our network has brokers who have occasional access to exclusive deals with Halifax. However, if you don’t meet their criteria, they might be able to help you find a different mortgage provider that offers more flexible lending terms.

Match with a broker that specialises in salvaging mortgages from Halifax

A good mortgage broker can increase your chances of a favourable outcome and help you save that homeownership dream.

It is in your best interests if Halifax can negotiate a new agreement. Remember that if the deal is not salvageable, your mortgage advisor might find a better one.

A free broker-matching service will match you with the right mortgage expert for your circumstances and needs. We’ll match you with a mortgage specialist who assists people who Halifax has declined. Perhaps that rejection was a blessing in disguise.


Get started online

Refused a mortgage from Halifax FAQs

What is the average time it takes for Halifax to approve a mortgage application?

Halifax states on its website that it can take up to three weeks to process a mortgage application. The actual processing time can vary depending on the length of the conveyancing and whether there are any issues with the property seller or the buyer’s circumstances.

Can I get a Halifax Mortgage based on my gambling income?

If your income is from gambling, Halifax will likely reject your mortgage application. However, there are specialist lenders that offer mortgages tailored for gamblers. For more information, see our guide to getting a mortgage if your income comes from gambling.

If the lender finds evidence of excessive gambling, recreational gambling is unlikely to result in mortgage rejection. Like most major mortgage providers, Halifax will likely assess each case individually.

Is it a sign that my Halifax mortgage has been approved after reaching valuation?

It doesn’t mean you have reached an advanced stage of the process. However, it does indicate that surveys have returned without any problems. It is unlikely that your mortgage application will be denied at this stage. All deal-breaking issues should have been addressed by now.

A mortgage lender can withhold a mortgage offer at any time up to completion if there is a significant problem.


Get started online

If Halifax rejects my mortgage application, can I appeal?

If you believe you have grounds for appeal against Halifax’s decision not to approve your mortgage, you may write to the underwriting team. The lender may appeal if they base their decision on inaccurate or outdated information or if your assets or capital are not declared to another bank or financial institution.

A mortgage broker can help you increase your chances of winning an appeal. They can handle all the paperwork and know how to negotiate with Halifax.

Halifax will check your credit after you have accepted a mortgage.

Although they might offer you a mortgage in principle based on a soft credit check and your credit history, underwriting will take a closer look at your credit reports. Sometimes, mortgages are denied after the AIP stage due to credit problems discovered by the underwriting team.

What is Halifax’s credit score?

Although Halifax uses credit scoring to evaluate mortgage applications, it doesn’t stipulate a minimum number you must have to be approved. When deciding whether you are creditworthy, the lender considers many factors. Each case will be evaluated individually.

Contact us today to discuss all mortgages and government schemes.


Get started online