Mortgage aip help

Rufus_hound

Went to see a mortgage advisor with my boyfriend with a view to move home and him get a mortgage based on his salary alone. (He is a Current Halifax mortgage customer for nearly 3 year)

Unfortunately his basic salary 22k wasn't enough for the 125k we would potentially need. The advisor suggest to add me to the process as this would increase the amount.

My otherwise perfect credit history is now severely flawed due to an ex of mine royally screwing me over on our old mortgage, leaving me to deal with a repression (which I didn't know about till it was too late, as we haven't lived together for 5 years) there was a shortfall of over 6k which I settled with a 'full and final settlement' of £1500. This was settled in sept 2012.

Back to the point, Halifax has agreed in principal a mortgage for my boyfriend and I for upto 168k.... I'm speechless! Is this too good to be true? The mortgage advisor seems to think its ok to proceed with as credit checks were performed , but I'm very cautious and nervous into getting our hopes up.

I'm in the proceed of getting a credit report from experian to see what entry has been made against the old mortgage account, and what my score is. My boyfriends was 999 last month when we checked his out..

Can anyone offer any advise as to whether they'll decline later on in the process? I'm very apprehensive..

Thanks in advance

kingstreet

This would worry me.

A Halifax mortgage promise is notoriously unreliable as it only records a soft search and it doesn't cover previous addresses.

There's a very good chance that at full application, you'd be declined if there was a historic repossession at a previous property.

In addition, by linking yourselves with an association, you could damage your partner's record, making it difficult to return to a sole application if this does fall apart.

Crashandburn

Worth seeing a copy of the application. Just make sure he has ticked yes to the repossessed question.

As for the Halifax process, computer can say yes only for a manual underwriter to say no! Sorry. I know that's the news you don't want to hear.

I would ask them to concluded all the underwriting before instructing any valuation so you aren't wasting any of your money. They'll only be able to confirm this once you have fully submitted a case. I think they do their first search on experian and a subsequent one on equifax

Rufus_hound

Thanks for the reply guys.... I'm 99% certain it will get declined, the advisor was really optimistic though as he said people in our situation normally get declined aip or 'referred' at best. This is what's caused me the confusion

If we don't go ahead and apply together (im not sure i see the point to get declined with me involved) there is the possibility of his sister doing a joint application with him. (She is also a current Halifax mortgage customer) so although not ideal should be straight forward? Would underwriters see it this way?

Crashandburn

On an AIP, it hasn't been referred to anyone to look at so not really worth the paper its written on.

As for the sister, they would ask why she is going on the mortgage if she doesn't plan to live there etc. There has to be a valid reason why she is going on the mortgage apart from just helping you two.

Wh05apk

Did you declare the repossession? I suspect the "advisor" "forgot " to tick the box, Halifax come down heavy on any undeclared adverse.

Also from their criteria:
"Applications where previous mortgages have been in arrears will be considered on an individual basis, unless previously taken into possession by a lender."

So I think as soon as this is picked up it will be declined, better to be declined now, than once you have paid fees etc.

ACG

I could be wrong but i would be very surprised if this was accepted at application stage.

Go and see a mortgage advisor. There may be lenders that will offer more based solely on your bf's income or lenders who will accept repossession (its hard to say for sure on here without knowing more info).