Decision in Principle?

TastyTeeth

I'm looking into buying a house and have got to the stage where I've seen the house I want, offered, been excepted and...

...have a Decision in Principle from the Halifax on the mortgage. Repayment over 30 years with a 35% deposit :j

My broker tells me that's as good as an acceptance and I'm now proceeding to move towards exchange in about 6 weeks time, finalising the application etc.

My credit history is a bit chequered to be honest, although good for the last 4-5 years - only one or two missed payments. To be honest I was expecting a knock-back on the mortgage side, so was pleasantly surprised when I got a DiP.

My question is...you've guessed it...am I in as good a position on the mortgage side with a DiP as I'm being told?

Your advice would be greatly appreciated

opinions4u

Assuming you can prove your income (and are not short term self-employed), you should be fine.

Repayment over 30 years with a 35% deposit

Give serious consideration to shortening that term, or at least overpaying. It will save you a fortune in interest over a lifetime!

Hopejack

Some lenders do not even look at your credit file when giving an AIP or a DIP. It could be that the Halifax decline to lend when they do a credit check. It is only when the delve deeper as part of an application that they check everything thoroughly.

Agree with opinions4u - that's a long mortgage - can you not pay over 25 years, will save a fair amount in interest.

xyellowx

i might be wrong but halifax told me they can do a AIP or a FULL MORTGAGE PROMISE

the AIP only does basic details

the FULL MORTGAGE PROMISE does the full
credit checks you have 6 months to just go back and sign for it

TastyTeeth

opinions4u wrote: »

Assuming you can prove your income (and are not short term self-employed), you should be fine.


Give serious consideration to shortening that term, or at least overpaying. It will save you a fortune in interest over a lifetime!

Good call, I'll look into the options today. :T

xyellowx

halifax will allow overpayments

TastyTeeth

xyellowx wrote: »

the AIP only does basic details

I assume no credit checks on this one?

tanman_3

hey,

i'm in the same boat, we've in the process of selling our house (offer has been accepted, the paper work is just going through now) and have a decision in principle from the abbey.

We've found a house, made an offer and have just submiited all the proof of income to the abbey underwritters today.

I'm a little nervous as to how long the decision from the abbey will take, am i wrong to think as long as the paper work matches up to the decision in principle figures then everything will go through smoothly????

Cheers

xyellowx

tastyteeth
i dont want to upset you or the experts on here who work for banks as i was only told this and it may well be wrong
the halifax mortgage adviser told me quote "AIP are not worth the paper they are written on as they are often declined later on when more checks are done"
he also said quote " a mortgage promise does all the checks if it passes on his computer straight away then the mortgage is yours its just a case of signing for it.
although surely a majority of AIP are excepted for mortgages

Housebuyer958

xyellowx wrote: »

tastyteeth
i dont want to upset you or the experts on here who work for banks as i was only told this and it may well be wrong
the halifax mortgage adviser told me quote "AIP are not worth the paper they are written on as they are often declined later on when more checks are done"
he also said quote " a mortgage promise does all the checks if it passes on his computer straight away then the mortgage is yours its just a case of signing for it.
although surely a majority of AIP are excepted for mortgages

That is exactly what happened to me about 2 weeks ago......with Halifax.....sorry - hoepfully you'll be fine but AIPs don't mean jack.

TastyTeeth

Thanks for all the replies. Most helpful.

I'm speaking to the MB tomorrow and will find out more about my position with the Halifax. I've taken what I've been told from him so far on face value and haven't been expecting any problems - perhaps there may well be some, perhaps not - but I'll seek to ensure that I am up to a "full mortgage promise" stage early next week (if I'm not already).

QUICK QUESTION: to obtain a full mortgage promise with the Halifax (through my mortgage broker), would I have had to send supporting paperwork? This'll help me understand if I am only at a DiP stage.

(Sorry if the question seems a bit dull, but I wasn't able to get in contact with the broker today to ask the question of him.)