hlifax AIP - what did they check if they don't credit search?

lobbyludd

Hi,
I saw a mortgage broker today, gave him all my financial info, including credit files and pointed out the bad bits to him.

He was confident that I'd get a mortgage (FTB, 75% LTV, 40K salary, 3x salary to borrow) but was unsure if a small 5 year and 11 month default was going to be a problem or not.

He convinced me to try for an agreement in principle with Halifax as they don't leave a footprint on your credit file, as a first try. I was sceptical because I bank with the halifax, and have done since I was a student (admittedly 20 years ago) but I used to be dreadful and I'm not squeaky clean now, bouncing the odd direct debit and incurring charges.

But they came straight back with an AIP. Broker is now using this as a good sign that he can shop around a bit to find me a deal with some of the "prime" lenders rather than near prime, although not the really tough-rules ones.

I've been totally honest with the broker obviously, in fact I think I overwhelmed him with bank statements, credit files incomings/outgoings, proof of earnings etc for a preliminary chat, and halifax "know" me, but I'm a bit sceptical that this has given the info he needed if they don't actually credit check.

so what do halifax check? will they have realised that I am the person who holds a bank account with them? - I wasn't there when he did the application so I don't know what info they ask for at AIP stage.... (I was walking back to work - the acceptance was in my email when I arrived at my desk 15 mins after I left him).

thanks!

holly_hobby

Your broker should be aware that an AIP is based on public record (or public domain) info - which is electoral roll, bankruptcy, CCJs and criminal proceedings - this is the reason why it doesn't leave a "footprint" on your credit record - and doesn't publish default or payment profile history.

Once a full application is submitted a full credit search is done with CRAs - which will reveal payment profile history with all creditors (present and those where the last payment was made within 6 yrs of the search), defaults, address history (and which does leave a footprint).

Did the broker submit any additional info with the AIP, detailing the previous credit blips ? If not, I would suggest your broker contact Halifax, and make sure the previous adverse is assessed as part of the AIP.

This normally requires the submission of a full application (no deal selected so that any reservation fees are not lost on a decline), which is assessed upto survey stage.

In doing this you wil ensure that when you say to your prospector vendor/estate agt you have mge already in place, you really do - then the only thing that can let you down is a poor survey.

There is a v similar thread to this already on the go - where the OP had an AIP - but was declined at application stage - have a read I think the OP is ugh.

Hope this helps

Holly

m00m00

if the default is 5 years and 11 months old, why not wait 4-6 weeks for it to drop off your record completely. If this is the only adverse info you have, it will make a big difference

casualwalks

I'm confused I got a AIP from the Abbey and the search showed up on up my credit file. Do some lenders do things differently?

holly_hobby

They have conducted a search with CRAs - that is why it is registered.

Holly

lobbyludd

thanks all - I read the other thread which is why I was concerned.

I won't apply for the proper mortgage offer until the default is cleared (I am buying my current home from my soon to be ex husband and I won't be able to buy it until the paperwork for the divorce is through - the default will be gone by then).

the broker is using the halifax AIP application as a steer to which provider to apply to (I don't know if that makes sense to anyone here - I'm fairly clueless). and I don't know if he told them about the default (and a late payment to next for 10 in dec/jan depending on whether you look at equifax or experian). I certainly pointed out these to him becase I don't want failed applications on my history.

he's supposed to be coming back with recommendations next week, I'll ask him if he let them know then.