Advice please....

e_flynn1

Hello All, just after some advise if poss, does an agreement in principle mean a lender has performed a credit score and decided they would be happy to lend to us up to the specified amount or can the lender turn around upon application and decline the mortgage??

The reason I ask is my partner and I were give a AIP by Northern Rock about 14 days ago and went ahead and put an offer in on a property, turned out that when IFA came to complete application Coventry Building Society offered a better product so we went with them but they have today declined the mortgage due to adverse credit on my partners report, as far as we are aware the adverse credit relates to an £85 catalogue payment which has been settled but we are now concered that northern rock will withdraw their offer and we may lose the property.

Any advice greatly appreciated!!

LisaT186

Northern Rock do carry out a credit check and score at time of DIP. It may be that the two lenders have used different credit companies? A lender is within their rights to recredit score when the application goes in again, but assuming nothing has changed then shouldn't be a problem. Also of course if they ask for wages slips etc they must match application! Are you absolutely sure that it is the catalogue payment that is the problem? Coventry usually allow up to £250 default as long as not registered in the last 6 months. Has the IFA called to clarify and asked if it is worth appealing?

toonfish

Coventry can be very picky, especially if this is for their 100% products. The underwriters do have som ediscretion though so it is well worth the broker trying to get them to proceed.

I had a client's case declined for a late credit card repayment almost a year ago and £50 over the overdraft limit! Managed to get them to do it after a 'phone call.

e_flynn1

Thank you to you both for replying.

I have a good friend who works there so I have currently got her speaking to the underwriters to try and find out more info for us, our IFA doesnt seem to keen on appealing- also have applied online to see credit report so we know ourselves what it is they have flagged up.

Trying not to panic too much but would hate to loose the house!!!