Nightmare just seen default already sent mortgage application.

liamdaley

Hi guys,

In a bit of a flap and looking for advice, I'm trying to buy a firstbuy property with a 5% gifted deposit, my broker has already sent off my application to halifax and taken the valuation fee and broker application fee.

I've finally just managed to get into my equifax credit report so I thought I'd have a look.

I've just seen a horrible red default square from December 2011 for a £60 default on an O2 contract - I cancelled the direct debit instead of phoning up to cancel after my term was over and just paid the bill they sent out straight away, I feel so stupid.

In a way I wish I never checked as I'm really worried, I'm not sure if it helps but here are some of the figures - do you think halifax are going to throw it out because of the default or do I have a chance?

£30,000 salary
£124,000 property
80/20 first buy split
£6200 gifted deposit
£93,000 mortgage so 3.1x earnings

I've had an AIP from the halifax and passed the credit score.

Never had any other blips on my file besides this and it's all down to not wanting to go through the hassle cancellations can put you through. It was such a stupid thing to do.

I've emailed my broker to give him a heads up, but the application is already on its way and now I can't think for worry.

Does anyone have any advice what I should do, what are my chances?

Liam

harvey115

Halifax would have declined your application in the first instance if they did not like the default. So there seems to be a good chance that your application may pass.

The FirstBuy scheme with the gifted deposit may go through some strict underwriting criteria, so not sure when the underwriter sees the default in light of the scheme if it may work or not.

Hope for the best and ask the broker to prepare for a backup plan if there is anything available.

PS - do not exchange without a mortgage offer in hand.

kingstreet

A Halifax AIP does not check credit conduct to the extent a full application check does. It's possible you passed the AIP score and will fail the full application check.

Brokers key these onto Halifax system directly, so your broker has control of when the application is made. I suggest you contact them to find out when they keyed it and what the decision was.

liamdaley

Thanks harvey115 for your quick response, I really appreciate your advice.

I've let my broker know, just waiting what he comes back to me with - I really should have checked my file first to avoid all this stress.

The local scheme who deals with FirstBuy in my area has approved my application and we've completed the PIF forms so hopefully from the scheme perspective it's all OK.

I'll make sure I don't exchange without the mortgage offer, I've reserved the property and now I'm just hoping the mortgage goes through.

liamdaley

Kingstreet thanks for your response - do you mind me asking what you mean by keyed it?

Liam

kingstreet

They type the data onto the Halifax system and press submit. The Halifax system then tells them if it's passed, been referred for further information, or declined.

It's instantaneous.

liamdaley

Thanks well I haven't been updated yet so I'm guessing it hasn't been keyed... fingers crossed although I don't fancy my chances.

alibumblebee

Hi Liam,
Wow I'm literally in the exact same position as you.
If I pm you my email address do you mind if you let me know your outcome and vice versa?
I wish I hadn't checked either now!
Thanks,
Alison

liamdaley

Hi Alison

Sure, I'll let you know hopefully it's good news for both of us, mine is being sent right now so I should have a better idea this afternoon. Do you know if yours has been keyed yet?

Liam

alibumblebee

I'm not sure what keyed means, I'm going through a broker and it only went in on Friday.
I spoke to Halifax this morning though about it and he said a default isn't the end of the world and still has a good chance given other factors that go in our favour.

kingstreet

alibumblebee wrote: »

I'm not sure what keyed means

Someone at the broker's office has pressed the alphabetical keys on a keyboard to enter the information which makes up a mortgage application.

"Typed" might be a useful alternative word.