FTB Mortgage Worries

AwesomeMcTawesome

Hey all, first post for a bit of info/put mind to rest/share with others.

My Wife and I have had an offer accepted for a house £87500 (AIP from Abbey of £90k, before offers went in).

The deposit is £8750 (10%) and via a broker have had full application approved from Abbey (fixed for 2 years), subject to being underwritten and valuation, so the mortgage is for £78750.

This was processed 24/05/12 and payslips/bank statement/i.d were sent.

The wife earns £19316 and I earn £33182 before tax.

Before we proceeded we ran credit reports (Equifax) I had an excellent rating with no issues....The Wife had a good rating with one issue from Dec 2008 - 3 1/2 years ago (before we met, might I add), a Next catalog of £250. She had moved house (renting) and forgot to update her details (don't get me started on this:mad:). As this came to light (to me....and the Wife then remembered...) it was settled right away.

This was disclosed to the mortgage adviser, who steered us away from certain lenders as the default would probably hinder the application, First Direct/HSBC a couple I remember.

Having read a few threads on here I am sweating on the underwriters signing it off.

All details put forward are legit and obviously we have passed a credit check/met lending criteria, I'm just very anxious and finding it hard to sleep!

Is this a case of default = no mortgage or are we in with a chance?

Your thoughts and advice are welcomed.

Dave_Ham

Good news is that you have passed the credit score at AIP, bad news is that this is not within Abbey policy as technically should have been declined.

My fear is that if they find it, they will decline it..

You may be able to get a mortgage given your information, although not sure Abbey is the best home now...

Good luck

ACG

A £250 default from 3 1/2 years ago isnt the end of the world. You will be able to get a mortgage.

Dave beat me to it!

AwesomeMcTawesome

Once we get any info back I'll post and let the forum know (It's gonna be a tense few days!)

AwesomeMcTawesome

I have received 2x phone calls from my adviser this week, so I thought I would update this thread.

First one on Wednesday was to inform us that the docs sent in have been through Admin and were now with the underwriter.

I asked for a further update today, which I have just received; mortgage has been underwritten and a valuation is being arranged! Should know more after the bank holiday weekend, hopefully the valuation will be booked and complete by the 15th and an offer with us!

So far so good!

AwesomeMcTawesome

Update: Mortgage advisor informs us that the valuation went well and the offer from Abbey is in the post, RESULT!

Apparently they only offered 75k first off, due to the fact they added a personal loan which was got to consolidate existing credit balances (car loans) to application (as well as the car loans (already paid off), but all sorted now!

To all people with a situation like mine, I implore then to see a whole of market advisor, it did the trick for us!

Also was wondering that as the mortgage was only 1.5x combined salary, would that have made the application approved?

DannyboyMidlands

I think that the 1.5x definitely helps. When we recently started looking to get a mortgage my OH informed me that she had a CCJ against her for unpaid debt before we met etc. etc.

Ours was something like 2x combined salary and sailed through.

AwesomeMcTawesome

Suppose we are lucky that the area we are in houses are comparatively cheaper. Most of my friends (from various areas of the UK) can't believe how much house we are getting for our money!

casslass

Thanks for the updates, Good to hear it has been approved. 'm just at the start of it and it is very stressful waiting for the decision. Congrats

GMS

Have you checked Experian too? Abbey use Experian if I remember correctly. May be that it didn't show.

Fingers crossed you will be ok. Hope they dont audit the case at a later date as their criteria specifcally excludes adverse credit now. They used to allow a bit but stopped it overnight a few months ago.

AwesomeMcTawesome

GMS wrote: »

Have you checked Experian too? Abbey use Experian if I remember correctly. May be that it didn't show.

Fingers crossed you will be ok. Hope they dont audit the case at a later date as their criteria specifcally excludes adverse credit now. They used to allow a bit but stopped it overnight a few months ago.

GMS; They were aware of the default as I made it clear in the notes sent on the application. Also not wanting to say that you are incorrect, but I have read the lending criteria (May 12) from the Abbey for Intermediaries website and it does not exclude adverse credit, other than;

Arrears in the previous 12 months are not acceptable.

Any customer who has ever been bankrupt will be declined.

It includes some adverse credit when credit scoring (which we have been through).

Where does it state specificly that adverse credit will result in a decline?


If that is the policy, its pretty cr*p that a broker would over look this (ours steered us away from other lenders for the fact having of the default).


Surley the lending, affordability, credit checks, mortgage t&c etc, laid down on there are the points to follow when applying (which I read before application).

Like you say fingers crossed, but i will be pretty pis*ed off :mad: if its got this far only to be pulled for something that was declared from day one!