Mortgage decision

trevormuk

Hello folks ... first post .. so go easy with me!

Can someone tell me what checks are made by the lender inorder to issue a Decision in Principle / Agreement in Principle certificate?

We have been to see the mortgage advisor at Northern Rock, and have been given one of these certificates (for lending up to a certain value). I am very surprised as I thought there would be a problem with obtaining a mortgage as I do not have a great credit history (student debt from years ago, default notice - although no CCJ's or bankrupcy etc.)

As I understand it we need to complete the application form to complete the process.... what further checks are normally made, and could they decline the application?

Thanks if anyone can help..
Cheers

dunstonh

They are quite worthless really. It basically means that as long as you have told the truth and everything you have said can be supported at time of application, then they will lend you x amount.

Its at application stage that all the checks are made.

trevormuk

Thanks mate. I asked the Northern Rock advisor if any checks had been made at this stage, and she advised that I had been checked and nothing negetive had shown up....

Do the number of checks made at the initial stage vary from lender to lender?

Based on this certificate I am going to go and put an offer on a house..... I will need to pay a survey and administration fee... if Northern Rock then say "oh.. sorry we can't give you the money" I will be a bit annoyed!

Thanks for any further information.

Cheers

herbiesjp

Each lender has a different way of scoring an agreement in principle/application so it is difficult to say what comes up.

Basically, with most lenders,at the AIP stage they carry out a credit check to see if there is any adverse information.

As DD rightly says though, they are quite worthless in that lenders carry out subsequent checks at the application stage. Any lender can pull out of agreeing a mortgage at any time.

trevormuk

Thanks for the info....

I'm not sure I want to sepnd c. £300 to then be told we can't have the money....

dunstonh

Thanks for the info....

I'm not sure I want to sepnd c. £300 to then be told we can't have the money....

Use a mortgage broker that makes no fee to you. Probably end up with a better mortage and wont waste time or money on declined applications.