Decision in Principle - further checks?

_Andy_

The application won't show as a decline, just that you've applied.

TheMiner

luckyfool wrote: »

Did you get an approval in principle certificate from a broker . . . if so then it was credit checked. If you were in branch and the mortgage advisor didnt do a proper agreement in principle then maybe you weren't checked, but thats because you didnt get an agreement in principle.

You are spot on - tho the estate agent seems happy with it. I've had an 'in principle' from L + C and there was no credit check there either

sgh1976

As stated above RBS gave us a decision in principle, then ran no further checks and declined the mortgage offer.

jade1986

sgh1976 wrote: »

As stated above RBS gave us a decision in principle, then ran no further checks and declined the mortgage offer.

Goodness were there changes from when they ran the credit check? What were the reasons?

sgh1976

jade1986 wrote: »

Goodness were there changes from when they ran the credit check? What were the reasons?

No changes at all. No new credit taken out or credit checks ran between their search and the decision (2 and a bit months)

Still waiting to hear their reasons behind the rejection.

Now going through the process again with the Halifax and yesterday got our decision in principle. Off their own scoring A-B-C we came out in B, which allowed us a mortgage of upto 130000, we want £95000

Its all a tad baffling

moatmeister

I wish someone would come clean about this credit report business and what the parameters are. It all seems a bit of a black art to me, and its almost impossible to find out where you stand with it until its' too late. Obviously if you have a huge income and perfect payment record thats probably a yes and if you are locked up in debtors prison for fraud thats probably a no, but even that's not definate, and the bit in the middle is a complete grey area which seems to depend on which side of the bed the computer has got out of. Its a nightmare!

kaznelson

sgh1976 wrote: »

No changes at all. No new credit taken out or credit checks ran between their search and the decision (2 and a bit months)

Still waiting to hear their reasons behind the rejection.

Now going through the process again with the Halifax and yesterday got our decision in principle. Off their own scoring A-B-C we came out in B, which allowed us a mortgage of upto 130000, we want £95000

Its all a tad baffling

I have been speaking to our mortgage broker a lot recently and he explained that a lot of companies are processing the mortgages but they then don't have the money in place to lend or the criteria has changed.

Therefore they reject at the last moment.

NeilB

Regarding DIP's and credit checks - yes some do searches on credit reports but there are 2 types, a 'quotation' type which leaves no footprint, and a full, which does.

Apparently lenders are sometimes doing a full check for a DIP when they shouldn't, adversely affecting the applicants credit file.

See http://www.moneysavingexpert.com/news/mortgages/2009/08/lenders-accused-of-harming-mortgage

iscrimger

NeilB wrote: »

Regarding DIP's and credit checks - yes some do searches on credit reports but there are 2 types, a 'quotation' type which leaves no footprint, and a full, which does.

Apparently lenders are sometimes doing a full check for a DIP when they shouldn't, adversely affecting the applicants credit file.

See http://www.moneysavingexpert.com/news/mortgages/2009/08/lenders-accused-of-harming-mortgage

This is what appears to have happened to me with Northern Rock. It now appears to have fallen off the searches in the last 3 months on my credit report but I'm still annoyed it was searched in the first place as I've no doubt it hit my rating.

Halifax haven't made any search on me at all, I do have a current account I infrequently use with them and they did ask for its details so I'm guessing that may play a part. They were very helpful, I plan to go to the branch and go through this then apply. They asked me to supply 12 months of pay slips to prove some of my income. I told them they could have 24 months if they want!

NeilB

Hope it all works out