Mortgage and credit check = failed

Pammy

Conrad wrote: »

It's difficult for any broker to give definitive predictions because in the end lenders are staffed by Humans with all thier frailties. One day an underwriter may wave a case through, the next say after a stressful meeting about arrears on a past case he'd agreed, he might decline.

But what how much does the lending criteria play for a MIP? For example if their criteria stipulates that they ignore defaults over 2 years under x amount then is that really the case?

Can I ask what their lending criteria is?

When I speak to lenders I never really get a clear response on this, its like they won't commit to whats stated in their lending criteria.

Enigma80

Sorted:
http://forums.moneysavingexpert.com/showthread.html?p=27708145#post27708145

Pammy

Congratulation. That is great news, I kept checking back to see how you got on.

Which lender are you going with?

Enigma80

Pammy wrote: »

Congratulation. That is great news, I kept checking back to see how you got on.

Which lender are you going with?

Thanks Pammy, our broker got us a deal with the Abbey, same as the Nationwide deal really, 2yr tracker at 4.16% above base rate (£70ish per 1% rise) so not too bad at all.
£550 for conveyancing too.

Conrad

Pammy wrote: »

But what how much does the lending criteria play for a MIP? For example if their criteria stipulates that they ignore defaults over 2 years under x amount then is that really the case?

Can I ask what their lending criteria is?

When I speak to lenders I never really get a clear response on this, its like they won't commit to whats stated in their lending criteria.

Official criteria is merely a rough framework. Underwriters put together the cocktail of factors that represents any given case, and then make a risk based assesment.

If it were just a simple flow chart leading to a yes or no, then a computer weould be able to carry out the underwriting task, but as yet we are no where near that stage with technology. The point being each Human is an individual and you cannot simply put them into a neat little box.

Enigma - thats good news - you got a break there. Abbey are very erratic and do a final assesment just prior to offer. Hopefuly you have gone though that stage.

Enigma80

Conrad wrote: »

Abbey are very erratic and do a final assesment just prior to offer. Hopefuly you have gone though that stage.

Well we have an agreement in principle certificate for which they did a credit check of some sort. We've been told that unless anything changes between now and taking the mortgage it'll go through.

We're just sending over official documentation to process the application.

Conrad

Abbey issue AIP's based on a computer credit score. At some point every case then goes to a Human underwriter.

An example is one we had recently for a lady wanting £30,000 on £160,000. At the very last moment they declined for spurious reasons. Nothing changed between AIP and the final decision.

I don't want to cause you worry, yours may well go through. Good luck.

Enigma80

I hope so too.

HelpWhereIcan

For your (and others') future reference if things do not worj out with the Abbey - which we hope it will

Enigma80 wrote: »

Thanks Sunny. Well my wife banks with Natwest and I with Barclays.

In your case, the lenders you have an existing relationship with tend to be the best place to start.

Natwest - historically would be flexible with one or two small defaults as long as the rest of your score was ok. As Conrad says, they have tightened up a bit but may still be worth a chat.

Barclays are possibly your best chance in some respects. They operate a Pre-approved Mortgage Limit (PAML) for their current account customers. Not everyone has one but if you do, the PAML will normally over-ride their normal credit scoring process.

If you have one and it covers the loan you need it may be the best way to do it. It does not follow that you will have a PAML that your ex could be added to, but it is worth checking. Your broker can check if they have your sort code and account number.

Enigma80 wrote: »

I'm hoping that the CC being with Barclays might help with the matter.

You may get points for having a relationship with them, but will lose at least that many for late payments with them - unless you have a PAML (which will probably take the card into account anyway).

Enigma80 wrote: »

Another factor that might be problematic is that I'm on contract. This issue alone wasn't a problem, but combined with the credit problem it may pose a greater threat.

As long as the contract has been renewed at least once (which you say it has) you should be ok.

Hope this helps