mortgage application, advice please.

lucylooby123

Okay, after being turned down by halifax and nationwide, we applied (via a broker) to melton mowbray building society.

The broker knows we haven't got a great credit history, but we do have 50% deposit (of a 200k house).

We provided everything, letter and bank statements to prove deposit, credit files, etc. He said we'd need to go for a sub prime lender.

Guy phoned and said bank had said yes, in principle. We never got a certificate, as he said we didn't NEED that, but got an email forwarded via him from the Melton to say they'd be willing to consider us.

Fees for this mortgage are near 2k :eek:

Broker takes his fee (£300) after the sale.

So, we've put in an offer on house, had it accepted, paid valuation fee.... and now broker has gone back to the melton with all our paperwork.

I can't help but feel, reading the horror stories here, that it's all going to go wrong. Will the melton really consider us? How long do they take to decide? broker said up to 6 weeks!!! vendors want to complete in 6 weeks, they have already bought somewhere.

I've children, animals, and a whole lifestyle to move, schools to arrange and the vendors are lovely and I so don't want to let them down.

After the initial excitement of the 'AIP' I'm now sick with nerves.

has anyone any sucess stories with the melton??

The_J

These guys sound like something Dave Ham would deal with, I personally have never used them because I'm not sure I could trust myself to avoid saying "PORK PIE FILLERS FROM MELTON MOWBRAY".

I would say that you are right to worry, an AIP is by no means a certainty but there's nothing you can do about it now. Smaller building societies do tend to ask more information, and do a thorough credit search *cough*halifax*cough*, at that stage so my feelings would be fairly positive.

lucylooby123

Thankyou, there's a search showing on experian from the day the the AIP was sent. It doesn't say that building society's name though, so assume it's an underwriter?

Dave_Ham

Hi there,

These are extreme adverse lenders and are v.expensive - did you get the 8% special?

They are slow, but to be fair do not decline often once they have said yes at AIP - given other things being equal.

I know I saw your initial thread; remind me why yours was adverse? as cannot think there would have been better options...?



Dave

lucylooby123

Thanks Dave, it was adverse because of a CCJ from ages ago, and my fella not being on the electroal roll (though we have proof of residency).
I have no idea of the % but I do know it's only tied in for two years, so once that's done we can apply for a better deal. The plan being that with money due to come in in 12 months time will pay a chunk off when we can. Would have been more prudent to wait, we know that, but need to move asap.

Dave_Ham

There are better adverse (from ages ago CCJ) companies that Melton..

Find out your rate if I was you and see if really affordable...

All the best

lucylooby123

the repayments work out at about a quarter of our monthly income, so affordability isn't an issue thankfully. We were very keen not to have huge outgoings as the move is all about a change of lifestyle - more money a month being one of them.

How long do they generally take to make a decision?

Thanks

Dave_Ham

It is never consistent, never typically longer than 3-5 days but until mortgage offer nothing is formalised..

Good luck