Help worried FTB

donnag1977

Hi I am new to this and new to buying my first flat.

I have recently had an offer accepted on a small one bed flat, offer accepted at 128000 and I have 20000 deposit. I earn 36300 a year in a stable job and have about 80000 left in small loans and credit card.( both small loans will be paid off in 8 months)

Had an agreed in principle mortgage through Woolwich based on my bank accounts with Barclays for silly money of up to 350000!

Have now applied for my mortgage of 108000.

My credit rating has been poor in the past but I have got my debts under control and have one missed payment in the past. Barclays have ran a credit check at the AIP stage and another one was done on the day they recieved my full app. Score was at 851, now 772 because they checked and left a footprint!

I had a text friday to say my they had received my application. Then another text monday to say my survey has been instructed and then a text today to say the survey will go ahead tomorrow.

Would Woolwich have to be happy with my credit before instructing the survey? or should I still be worried that I could be declined at this point? I have read so many bad stories on the net tonight
Thanks

MagicCats

I'm assuming you mean £8k and not £80k in loans etc? Did the Woolwich really offer you that amount after an AIP? That's like 10x your income???

With regards to your chances the first thing is the money you owe in loans etc will be knocked off your potential borrowings. For example if you could borrow £120k with Barclays, but owe £10k in un-secure borrowings they would reduce your offer by £10k to £110k. You know the actual figures so just add up what you owe and that will give you the figure that will be taken off by the lender, I've just used example figures.

As for your chances and the credit score number; the number is meaningless. It's the banks internal scoring you need to worry about. One of the resident brokers will be along soon to give better advice, but I wouldn't worry too much. Not much you can do at the minute, and remember you only ever hear the bad news on the 'net, not the good news

Good Luck.

donnag1977

Thanks that's helpful and yes I did mean 8000 not 80K,! sorry

yes they really did offer up to that much in principle! there has been a fair bit of good traffic through my bank due to some repayment claims I had from some PPI claims. The advisor thinks the large offer was due to that! crazy!

Do you have any advice on whether I should take some heart and confidence from the the fact that survey is being done today? or can I expect that they can still decline on my credit even if the survey is good, and lose my survey money?

I am generally very level headed but this process has turned me into a worrier! I will stop looking at the net!!

Darkstar

At this point I would start worrying about actually owning your first flat and all the issues you will need to resolve next. However don't start looking in to insurance, phone, gas &electric, council tax, etc just yet as these can leave a mark on your credit score should Barclay's check again which they won't. Just start a list with phone numbers so you can get going as soon as you get that good news.

donnag1977

Thanks for your reply, that makes me a little reassured! Have those things in my mind but certainly won't do anything about them yet! Hopefully inshould hear either way soon.

donnag1977

Hi again sorry I am harping on but even though the survey was done today is there still a chance they could fail me on credit and then I would loose that money, even when first credit checks have been done? x

ACG

Nope, chances are after the val has been done the only thing that would cause any issues is if the valuation doesnt meet what you have offered.

donnag1977

Thanks guess i just need to wait for something to come through the letter box then.

ACG

It will probably be a week or so, no need to be tearing the posties arm off just yet.

I know you still will, but i wouldnt worry too much.

Simon_gloster

donnag1977 wrote: »

Thanks guess i just need to wait for something to come through the letter box then.

Some lenders perform credit checks prior to offer. It'll depend on how long the app has been going on and the lended involved.

donnag1977

Hi ya, the application was received last Friday, I had a text yesterday to say the survey was complete and they will be in touch? So hopefully sometime soon. It's still worrying but out of my hands I guess x