A few questions about the application process

chequer71

Hi all,

We're still very much in the planning stages for a FTB mortgage application later in the year, taking on as much info from the forums and guides as we possibly can!

Wondering if anyone could help answer a few queries that I haven't managed to resolve yet...

1) For AIPs, do lenders need to see proof that the necessary deposit is there? Or could we conceivably get an AIP to go house-hunting with and only need to produce the funds at the full application stage? Would that then only be a "soft search"?

2) Which lenders are generally perceived as more "generous" (both in terms of what they will lend and passing applications)? Reading the threads I get the impression that HSBC are generally tougher and Halifax/Nationwide a bit easier. Is that right? Both myself and my partner have banked with HSBC and Halifax for a while but I'm wondering whether it's worth opening a Nationwide or other account at this point.

3) My partner has only just started her current job (probation period ends in a couple of months) and I've been in my current role for only 14 months. Before that we've moved around the country temping, saving money for postgrad studies, and doing postgrad studies. Not ideal obviously for the stability side of the application process but how much of an issue is it really likely to be? Our credit histories should be pretty good.

4) As long as I'm registered at my current address, does it matter that my credit file doesn't seem to have me on the electoral role for all of the previous addresses I've lived at? And would there be any way to amend that?

Would greatly appreciate responses on any or all of them. We're gradually getting there with our understanding and strategy but it's comforting to cover the holes in our knowledge as we go!

Velvet_Glove

chequer71 wrote: »

Hi all,


1) For AIPs, do lenders need to see proof that the necessary deposit is there? Or could we conceivably get an AIP to go house-hunting with and only need to produce the funds at the full application stage? Would that then only be a "soft search"?

You won't need proof at the AIP stage, but they will want a figure. I'm not sure what you mean by 'soft search', so apologies, but can't help there.

2) Which lenders are generally perceived as more "generous" (both in terms of what they will lend and passing applications)? Reading the threads I get the impression that HSBC are generally tougher and Halifax/Nationwide a bit easier. Is that right? Both myself and my partner have banked with HSBC and Halifax for a while but I'm wondering whether it's worth opening a Nationwide or other account at this point.

I've heard that HBOS has lent the most this year to FTBs, and I've also heard that the Co-Operative are very good. Nationwide have the Save To Buy account, where if you save in it for at least 6 months (I think) you can then apply for their 5% deposit mortgage. We have a STB account and although aren't going through Nationwide, it's quite nice to have an account where the deposit is kept separate from our other accounts.

3) My partner has only just started her current job (probation period ends in a couple of months) and I've been in my current role for only 14 months. Before that we've moved around the country temping, saving money for postgrad studies, and doing postgrad studies. Not ideal obviously for the stability side of the application process but how much of an issue is it really likely to be? Our credit histories should be pretty good.

You should be fine, but your partner may be an issue for a few banks. I was 7 months through a 1 year contract when we started applying for mortgages and was turned down twice by lenders due to this. Luckily my boss was very understanding and fast tracked my permanent contract. We are with ING (now Barclays), but our back up was HBOS who knew our situation and said they could help (this was before I was made permanent) so you could always try. Nationwide was one of the refusers FYI.

4) As long as I'm registered at my current address, does it matter that my credit file doesn't seem to have me on the electoral role for all of the previous addresses I've lived at? And would there be any way to amend that?

I don't think it would be a problem, but perhaps wait for someone else to confirm. I think our lenders only wanted one past address, but no electoral role confirmations. I'm not sure if they check this though,

chequer71

Thanks for the response Velvet.

Good to know about the AIP not needing proof of deposit. There are a few reasons why we'd like to move pretty fast on a purchase once we're in the position to do so (trying for kids/financial attractiveness of it right now/living in an area of London where prices are rising fairly quickly and the kind of properties we're looking at sell fast) but being able to get the ball rolling sooner rather than later means that we'd be able to do viewings and make contacts late summer/early autumn rather than being hampered by the Christmas season.

My partner will have been in the job for 6 months come September, FT contract, and (hopefully) passed the probation period. Halifax are looking like an increasingly good lender for our situation, but being first-timers we'll probably seek some broker advice. Apart from saving furiously I think the next step is improving our credit records. Mine is looking decent barring a few minor quibbles. I'm thinking my partner might be advised to ask her bank for a credit card(?) Aside from her postgrad overdraft, phone contract, and a couple of recent utility bills, she doesn't have that much of a credit history.

Velvet_Glove

Hi Chequer

You guys sound very organised! I think a credit card for your partner would be a very good idea - we both originally got them so our credit ratings could be improved/maintained and I use mine for e-book purchases, so small and regular.

We actually started making offers on the place we're hoping to buy in December, and our agent did actually say to us that at that stage of the year, you can get bargains as sellers are trying to get done before Christmas. I would think that if you could make sure you've got your proof of deposit all sorted by then, (you just need copies of the bank statements where it is held) then you could probably get your mortgage application done before Christmas too, as it only takes a couple of hours at the bank.