Halifax Mortgage in Principle

stimpssl

Hi all,

Any advice would be appreciated!!

My hubby and I have had a mortgage in principle offer from the Halifax. Does anyone know whether this means we will definately get a mortgage from them. I thought I had a couple of defaults on my credit file but have downloaded my file from both Experian and Equifax and there is nothing on there.

Had 2 idiots of financial advisors last year who did loads of unnecesary searches on my files so am a bit sceptical.

Just wondered whether cause we had a MIP that means we have definately got the mortgage.

Thanks.

_Andy_

It will never be 'definete' with any company - it simply means that based on the information you've told them about income, etc., and a credit search, they'd be happy in principle to lend. This is subject to things like proof of income, a satisfactory valuation on the property, etc.

stimpssl

Thanks for your reply Andy. I was just a bit concerned (cause of been messed about so much last year) that they would do more credit checks after the offer in principle. payslips etc will be fine. Wondered whether something would come up even though my copy of my credit file is okay. Thanks again.

dunstonh

A decision in principle works on the following basis: "if the information you have told us is correct and no new information comes to light which alters that negatively then we will lend the money to you on that basis based on our current lending criteria".

In general, a decision in principle is not worth anything. They can go back on it but would only generally do that if the lending criteria has changed, you havent told them something that will have a negative impact (or told porkies - yes that does happen) or the property doesnt meet requirements (inc valuation failing).

mattpearce79

I'm exactly the same as you stimpssl, mortgage promise received from Halifax 2 weeks ago. If i'm honest i'm a little bit worried with all the recent takeovers etc, that they will make some kind of excuse not to lend and set us back to where we started.

Zapp_from_Planet_Zogg

We got a 'decision in principle' from HSBC but were subsequently declined due to my partner having a managed loan with the HSBC..... which, may I add, they knew about at the time of them giving the decision in principle.

Strikes me that the banks are trying to find any excuse not to lend at the moment.