Halifax mortgage promise and credit default

ammarah

I need so advice please.
My husband and I have applied for a mortgage with halifax. We have a mortgage promise and have had an offer accepted on a house. The survey has been paid for and things seem to be going ok. The mortgage advisor told us that we both came up with a first class credit rating when he did the check for the mortgage promise. The only problem is this....I have just been on experian to check my credit record as I am so worried about this falling through. On my accounts I have a satisfied default from 2006, it was for £2500 on a credit card....student days! I am now a lot more careful with my money and my credit record has been clean since I settled the default in early 2007. I have had credit cards and mobile phones since but I am really worried that the underwriters will see this default and decline our mortgage. I should also mention that I earn much less than my husband so most of the mortgage is based on his salary but my salary does make up some of it.

I just want to know if anyone has been approved a mortgage in this situation or am I likely to be declined? Many thanks in advance

opinions4u

If you've paid the valuation fee I'm assuming you've made a full application, so you're beyond the Promise stage.

I think you'll be fine, as this has been taken in to account in the credit scoring.

As long as nothing else comes along between now and completion it probably won't even get looked at.

ammarah

Thanks for the reply, I just so worried!

The survey is due to be carried out next week so does this mean I have made a full application. I have heard about underwriters finding defaults last minute and declining mortgages.

Wh05apk

Do Halifax have the address where the deafult was registered, it's just that if you have moved since, and they have only checked 3 years they may not be aware of it? If they were aware of it, then it would have been taken into account, if it was 2006 then it would be becomining less significant anyway.

ammarah

No they don't have the address because I have lived at my current address for 4 years now.

Wh05apk

ammarah wrote: »

No they don't have the address because I have lived at my current address for 4 years now.

Whats your LTV?

One of the questions on the app will relate to defaults, so you should declare it, rather than expecting them to trace it, it the LTV is below 75% I wouldn't expect it to have a major impact.

ammarah

We are borrowing 90% as we only have a 10% deposit.

Wh05apk

Two options:

1/ Go back to your advisor (branch?) who will probably say forget about it and keep quiet! but if raised with underwriters, it may cause a problem at 90% they are very fussy.

2/ Do nothing, you will "probably" be ok, but you should have declared it, so it could be seen as a fraudulent application if discovered, although if at a previous address that would probably be unlikely.

ammarah

Wh05apk wrote: »

Two options:

1/ Go back to your advisor (branch?) who will probably say forget about it and keep quiet! but if raised with underwriters, it may cause a problem at 90% they are very fussy.

2/ Do nothing, you will "probably" be ok, but you should have declared it, so it could be seen as a fraudulent application if discovered, although if at a previous address that would probably be unlikely.

Ok, thanks for the advice. What do the underwriters look at? If they use experian they are bound to find it because it is listed in my accounts.

Wh05apk

ammarah wrote: »

Ok, thanks for the advice. What do the underwriters look at? If they use experian they are bound to find it because it is listed in my accounts.

If that's the case, then it should have been taken into account already, so should not be an issue.

Debsidoodah

Hi,

I hope you're well and the mortgage application isn't stressing you too much! I thought I would get in touch as, after a few weeks of nervously waiting, I finally got my mortgage accepted with Halifax today.

I was also a bit worried about my credit report, as it wasn't updated to show that I have paid off all my credit cards recently. In fact, it was still showing that I owed around £7000 on credit cards and I had said on my mortgage application that I had no debt anymore. However, the advisor did the credit check while I was going through the application with him (which I believe your advisor did too) and said that I had passed the check and he assured me that is the only time they do a credit check. They don't get someone else to have a look at it at a later stage. The computer either accepts it and lets you move on to arrange a survey, or straight declines you.

Now that you have paid your valuation fee, I'm sure everything will be fine. I found Halifax really helpful (despite me constantly testing their patience by calling them for updates!) What paperwork did they ask you for? I only had to show my wage slips however, I'm around the 45% LTV mark.

Another thing that might be worth knowing in the future, is that you can add a notice of correction to your Experian report to explain certain things that are on there. For example, I did it to show that although I'm not on the electoral role yet, I have applied and I will be registered in December. You could write one to explain your default, why it happened and also to explain that you have learned your lesson and have had good, steady credit agreements since. This can all help when you are applying for credit. Experian can help with wording.

Anyway, I hope I have helped in some way and if there's anything else you would like to ask about my experience with Halifax, please feel free to get in touch.

I will have my fingers crossed for you but so far, your experience sounds similar to mine and I'm sure it will work out fine for you and your husband.

Debs