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    • tain
    • By tain 10th Jul 17, 1:59 PM
    • 461Posts
    • 587Thanks
    tain
    Decision in Principle
    • #1
    • 10th Jul 17, 1:59 PM
    Decision in Principle 10th Jul 17 at 1:59 PM
    We're just about to start looking for houses, so have spoken to a mortgage broker (London & Country), and obtained a Decision in Principle from them (for our own piece of mind, as we're both first time buyers).

    I thought they would need to do a credit check for this, but they didn't need to. Is their decision in principle therefore different to one of a bank? Or have I just made up the whole concept of a credit check at DIP stage?

    Also, I had defaults galore 6-10 years ago, but none remain on my credit file (my whole credit file is clear now). Based on this, there is no reason I'd ever need to declare the old defaults, right? I'm not trying to hide anything from them, but it will be annoyingly difficult to get any paperwork and details on them as they're now so old.

    Thanks in advance
Page 1
    • zx81
    • By zx81 10th Jul 17, 2:01 PM
    • 12,446 Posts
    • 12,621 Thanks
    zx81
    • #2
    • 10th Jul 17, 2:01 PM
    • #2
    • 10th Jul 17, 2:01 PM
    Also, I had defaults galore 6-10 years ago, but none remain on my credit file (my whole credit file is clear now). Based on this, there is no reason I'd ever need to declare the old defaults, right?
    Originally posted by tain
    You would, if they asked you.
    • amnblog
    • By amnblog 10th Jul 17, 2:03 PM
    • 9,501 Posts
    • 3,670 Thanks
    amnblog
    • #3
    • 10th Jul 17, 2:03 PM
    • #3
    • 10th Jul 17, 2:03 PM
    The Broker won't be lending you any money, so a decision in principle from them has about as much value as my promising you a tax rebate.

    When asked by a Lender (and you will be) about previous defaults, you can declare them.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Jkbc90
    • By Jkbc90 10th Jul 17, 2:21 PM
    • 62 Posts
    • 21 Thanks
    Jkbc90
    • #4
    • 10th Jul 17, 2:21 PM
    • #4
    • 10th Jul 17, 2:21 PM
    We we got our DIP (via a broker with Nationwide) the credit search didn't show on the report until about 2 weeks later.
    • tain
    • By tain 10th Jul 17, 2:46 PM
    • 461 Posts
    • 587 Thanks
    tain
    • #5
    • 10th Jul 17, 2:46 PM
    • #5
    • 10th Jul 17, 2:46 PM
    We we got our DIP (via a broker with Nationwide) the credit search didn't show on the report until about 2 weeks later.
    Originally posted by Jkbc90
    They confirmed on the phone that they wouldn't be doing a credit check at this stage.
    • Jkbc90
    • By Jkbc90 10th Jul 17, 2:56 PM
    • 62 Posts
    • 21 Thanks
    Jkbc90
    • #6
    • 10th Jul 17, 2:56 PM
    • #6
    • 10th Jul 17, 2:56 PM
    Oh sorry I didn't realise.
    • tain
    • By tain 10th Jul 17, 2:58 PM
    • 461 Posts
    • 587 Thanks
    tain
    • #7
    • 10th Jul 17, 2:58 PM
    • #7
    • 10th Jul 17, 2:58 PM
    The Broker won't be lending you any money, so a decision in principle from them has about as much value as my promising you a tax rebate.

    When asked by a Lender (and you will be) about previous defaults, you can declare them.
    Originally posted by amnblog
    So will they have a burden on our chances of getting credit, even though they're older than 6 years and not on our file?
    • amnblog
    • By amnblog 10th Jul 17, 3:06 PM
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    amnblog
    • #8
    • 10th Jul 17, 3:06 PM
    • #8
    • 10th Jul 17, 3:06 PM
    It would be extremely unlikely (unless the debts were incurred with the Bank you approach for mortgage lending).
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • charlottelianne
    • By charlottelianne 10th Jul 17, 4:00 PM
    • 2 Posts
    • 0 Thanks
    charlottelianne
    • #9
    • 10th Jul 17, 4:00 PM
    • #9
    • 10th Jul 17, 4:00 PM
    We applied for a DIP via Nationwide Online. I would suggest getting a DIP with the bank. It can be done online within 15 minutes then you can go straight onto the mortgage application once you have found your property.
    • tori.k
    • By tori.k 10th Jul 17, 4:18 PM
    • 2,724 Posts
    • 6,064 Thanks
    tori.k
    When we first considered buying we hit up L&C for some free advice there none credit checked verbal AIP gave us the ball park figure we needed to know for which house price bracket we were looking at. Our credit checked DIP our broker has done came out with the same numbers, so if you were honest with L&C there shouldn't be any issue.
    Debit to Credit (stage 1) 3652.34 completed 15/10/16
    Debit to Credit (stage 2) 6299.09 completed 25/06/17
    Last Castle 150,000/ 23,386
    • kingstreet
    • By kingstreet 10th Jul 17, 5:38 PM
    • 31,565 Posts
    • 16,858 Thanks
    kingstreet
    L&C don't do an agreement in principle until you have an accepted offer on a property.

    This is because it takes work and they know a high percentage will be picked off by lenders, other brokers and more often than not by estate agencies if they do them too early.

    They therefore send people out thinking they have an agreement in principle (like Nationwide or Santander's fully credit-scored version on which you can pretty much rely) when in fact all they have is a basic affordability calculation.

    Each to their own, but that is not how we roll...
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • tain
    • By tain 10th Jul 17, 5:41 PM
    • 461 Posts
    • 587 Thanks
    tain
    L&C don't do an agreement in principle until you have an accepted offer on a property.

    This is because it takes work and they know a high percentage will be picked off by lenders, other brokers and more often than not by estate agencies if they do them too early.

    They therefore send people out thinking they have an agreement in principle (like Nationwide or Santander's fully credit-scored version on which you can pretty much rely) when in fact all they have is a basic affordability calculation.

    Each to their own, but that is not how we roll...
    Originally posted by kingstreet

    This is exactly what I thought, that it wasn't worth the paper it was written on. I thought I would be asked about pensions, travel expenses, etc. but wasn't.
    • kingstreet
    • By kingstreet 10th Jul 17, 5:48 PM
    • 31,565 Posts
    • 16,858 Thanks
    kingstreet
    To be fair, most lenders aren't interested in such things.

    Have a look at the lender calculators on their intermediary sites. Most don't ask about 'normal' expenses. They use ONS figures based on the size of the household. Their interest is in the unusual;-

    credit card debt
    HP/loans
    student loans
    ground rent & service charges
    maintenance
    childcare/school fees.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • starM
    • By starM 10th Jul 17, 7:12 PM
    • 1,291 Posts
    • 174 Thanks
    starM
    If the defaults has been removed from your credit report then there is no need to declare to the lender. They will have no way of knowing anyway as its not showing on your credit report. By declaring they might decline your application.

    Just don't apply with a lender who you have defaulted previously.
    • tain
    • By tain 10th Jul 17, 7:20 PM
    • 461 Posts
    • 587 Thanks
    tain
    Can anyone recommend a trusted broker who can offer a reliable mortgage in principle?
    • kingstreet
    • By kingstreet 11th Jul 17, 8:43 AM
    • 31,565 Posts
    • 16,858 Thanks
    kingstreet
    If the defaults has been removed from your credit report then there is no need to declare to the lender. They will have no way of knowing anyway as its not showing on your credit report. By declaring they might decline your application.

    Just don't apply with a lender who you have defaulted previously.
    Originally posted by starM
    You answer the question honestly.

    If the question is "have you ever...?" you don't answer no unless you are instructed to do so, by Halifax for example, if the adverse was registered more than six years ago.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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