FTB with fruity credit history seeks advice about Mortgage Application

SE9Gull

Good evening

Forgive me if this question has been answered before - I have done a fairly thorough search and couldn't get any joy.

Here's the background: I had a fairly fruity credit history (no CCJs or bankruptcies, but a fair few defaults from 2001) - however thanks to my friends at Westcot Credit Services (judging by the horror stories I read, I believe I may well be the only customer they ever treated fairly) I paid off everything I owed, and the last credit check I did only had 1 default listed on it - for the sum of £1805 which was marked as being satisfied in July 2005 - which is true - that's when I finished paying it off.

However my credit score has always seemed to be a bit surreal, whilst my bank were happy to give me a credit card with a decent limit, an £800 overdraft and a personal loan, my other card company Capital One have never granted me an extension above my £200 limit in 4 years.

This week, I (along with my wife who has a perfect credit history) applied for a mortgage with a whole-of-market advisor. Having told the broker about my credit history (well, in particular about the one default that was still listed on there) he managed to come up with a deal from a big name company. However, today I recieved a letter stating that in order to proceed with the 'application' I have to pay a cheque for a considerable three figure sum in respect of the Valuation and Booking Fee.

Here's the question: Does the fact that our mortgage application has reached this stage mean that we have already been credit-scored? I appreciate I have to send off ID, etc, but am loathe to part with over £500 in fees only for the application to fail due to us not passing the credit check.

If you've read this far, thanks for reading.

If you've read this far and can help me out then it'll much appreciated.

Regards
SE9Gull

izoomzoom

Hiya

When you met the broker, did they give you a KFI that stated what / where their fees would come from ?

It is pretty normal, I think, for you to pay the valuation and booking fees upfront, unless they are / can be added to the mortgage.

Is the application for a specific purchase (and property) or are you getting an agreement in principle ? I don't know whether this has any impact on what you pay now, but it might do.

Finally, I think that if you were to name the propsed lender, brokers on this site would be able to give you more much more info.

Rick62

It should mean that you have been credtit scored, ask the broker if you have an 'Agreement in Principle' (AIP) and ask for a copy of it.

However, it will still not have gone to offer, and will be subject to valuation, confirmation of earnings etc.

50_percent

I can't answer your question about whether being asked to pay fees means you have been credit scored, but hopefully this will be some reassuarance.
I was recently refused a mortgage, after paying a large sum for the fees and survey, this sum was refunded after I was refused - although it did take a bit of chasing.
So hopefully, if things don't work out, your money will still be refunded. :A

SE9Gull

Thanks for the replies to my initial enquiry so far, in answer to the subsequent points;

from izoomzoom
- The broker sent me a KFI sheet, his fees are paid by the mortgage company upon completion
- The application is for a specific property upon which an offer has been accepted
- The lender is Scottish Widows, the broker is MoneySupermarket


from Rick62
- I haven't got an Agreement In Principle (however I will ask my broker if he has one) - all I have is a Mortgage Application sheet which has all the details of myself, my wife and the property we would like to purchase - plus a declaration full of smallprint - some of which mentions I will be authorising them to carry out a credit search.

I would have just assumed a credit search would already have been carried out prior to me progressing this far?

MortgageMamma

who is your lender?

toonfish

MortgageMamma wrote:

who is your lender?

I bet it's Scottish Widows

herbiesjp

SE9Gull wrote:

from Rick62
- I haven't got an Agreement In Principle (however I will ask my broker if he has one) - all I have is a Mortgage Application sheet which has all the details of myself, my wife and the property we would like to purchase - plus a declaration full of smallprint - some of which mentions I will be authorising them to carry out a credit search.

I would have just assumed a credit search would already have been carried out prior to me progressing this far?

If you have not sent anything to a lender before completing the application form, then they will carry out the credit search upon receipt of the full application - otherwise they will not have had any informtion on which to carry out a credit search

HTH

MortgageMamma

I reckon on it being royal bank of scotland they are still turning away apps that are not fully packaged

herbiesjp

MortgageMamma wrote:

I reckon on it being royal bank of scotland they are still turning away apps that are not fully packaged

MM - the OP has already said it's Scottish Widows :rotfl:

toonfish

herbiesjp wrote:

MM - the OP has already said it's Scottish Widows :rotfl:

now obviously if Mortgage Mamma was charging fees she would have had more time available to do the necessary research