PAML too good to be true?

kent_couple

I think I was offered a PAML during a telephone conversation with a Barclays guy a couple of months ago, he mentioned that it was a 'pre-approved mortgage something'....and that it overrides all the affordability, credit checks etc. Is this really true, surely they have to do some sort of checks?

I've been with Barclays for about thirty years and have had a mortgage with Woolwich for about three years and was looking to get some extra finance to pay off some rather horrendous credit card balances, with similarly horrendous interest charges.:eek:

I have done the downsizing, shopping at all the discount stores, insurance shopping around but as the OH has not been gainfully employed for a few years (not for the want of trying) income means that we get by rather than can pay off cards. Once he has a job....(soon please!)....we can start to make dents in them, but until them it would help to reduce the interest charges.:idea:

My main concern is that if we apply for this PAML thing, which was being sold to me as almost a 'done deal' and it gets turned down, we'll get a nasty black mark on our credit rating.

I did check mine recently and it was fine, he didn't check his but he's not had any dodgy letters or CCJs etc in the past and we did get the mortgage three years ago so I can't see that his is a problem.

What exactly will they ask for in their application - budgets etc? What are these PAML's all about? The Woolwich site gives basic info but not what is required on the application.

If they can tell you won't get a loan or further mortgage advance in one breath under affordabilty reasons (which was unrealistic and unfair in our case as we are so frugal it hurts) then suddenly tell you that you have a PAML....I'm confused?!

Being prepared would take some of the stress out of this stressfull situation - so any help or advice would be gratefully accepted.....sorry I've waffled on abit!:o

VIGILANT22

it's correct.......

Pre-Approved Mortgage Limits are often available to Barclays Current Account customers who have held their account for six months or more and use it as their primary account. If you have PAML there will be no need to provide further evidence of income provided the following criteria are met:

• The mortgage required is £500,000 or less.
• There are no more than two applicants applying.
• At least one applicant is aged between 18-65 - our standard age restriction policy applies.
• At least one applicant has resided in the UK for the last two years and has permanent rights of residency to reside here.
• The application meets our standard lending policy and product criteria.
• Your Budget Planner confirms affordability for the mortgage amount requested.
• Customers must have clear and satisfactory credit history; including no history of bankruptcy, IVAs, or repossessions.

Dan_1976

They are good and bad. I have heard of some crazy loans being given out but they can help the self employed a lot.

tiggerjj

When i went to Barclays to enquire about a mortgage I was offered the PAML as well (i am a FTB)
Basically it has meant that all the normal bits of evidence about payslips and bankstatements dont need to be provided. At the moment the survey has just been done so not finished yet but will post up when done to let you know how it goes. So far it has been fine though

JA1000

Go for it, you wont get a bad mark, you'll get rid of the credit cards but you say they are high, they may have a limit on consolidation?

Worst case scenario is you go through some paperwork and they say no, you will be in a no worse situation for trying.

kent_couple

Thank you all for your replies, I think I will go for it.

Can anybody tell me what they actually ask for in the application please, so that I am pre-pared?

Will they do things differently if it is treated as a consolidation application rather than a further advance?

Thanks

getmore4less

Is your current mortgage with Barclays(Woolwich).

If looking at extra borrowing this may be done as reserve on the exitsing deal this borrowing would be at the SVR if they did it this way.

http://www.bank.barclays.co.uk/Mortgage/Additionalborrowing/P1242557992406

tiggerjj

Just had my mortgage offer. Has been painless so far, Info they required ID so passport, Most of the rest was questions which i could answer without too many problems or having to go away and check so it cant have been too hard!!!!!

kent_couple

My current mortgage is with Barclays (Woolwich) - I was given a reserve account when the mortgage was opended but the credit limit was only £4K ish which is a lot less than our intedned borrowing.

Thanks for the link getmore4less, I'll have a look.

kent_couple

I had a look at the link, when I chatted to the chap before he mentioned about the option of the reserve account and/or the further advance.

Can anybody tell me what they actually ask for - eg do they ask for a budget breakdown, amounts of current lending, credit cards etc,...

What do I need in front of me before I phone, that sort of thing....I hate speaking to one person then having to speak to someone else when you have to go away and find some other document!

Thanks