Halifax & Nationwide Lending Criteria

EHJK

Hello Everyone,

Does anyone know what the lending criteria for Halifax and Nationwide is (or even Santander)? All their websites and intermediary websites only give generalised criteria, not specific criteria like a lot of lenders. Just wondered if anyone has the specifics for those lenders? I am interested in the credit history elements to their criteria.

Crashandburn

That's because in most cases there is no hard a fast rule for 'credit history elements'. Its more subject to credit score.

Whilst people bemoan a throw it and see approach, in some cases you have to because you never quite know how their score card may be currently set.

ACG

What issues do you have in your past?
We can maybe give you an idea.

Also what is the LTV of the mortgage.

EHJK

80% LTV.
4 months ago some missed payments, 7 in total for last 12 months. Default of £200 (settled) from over 2 years ago. Everything clearing up now and no missed payments for 4 months, will be 5 in a couple of weeks. Unsecured lending has reduced, aided by a PPI refund which I have used to clear a loan, overdraft and reduce CC balances (still £14750 outstanding though). Although somewhat irrelevant my credit rating from agencies has repaired from poor to fair, which I hope turns good in April.

I tend to fit the lending criteria of lenders such as Precise but the rates are much higher, obviously. Few articles, threads on here and general opinion that Halifax (whom I bank with for > 15 years - irrelevant I know), Nationwide or Santander are possible candidates. The 2 year old default I suspect would scupper a deal with those lenders which is why I asked about their specific lending criteria. Looks like they keep it undisclosed so they can change it at will according to market conditions?

ACG

Santander i wouldnt waste my time with. Natiowide im not too sure about, Halifax might be a goer.

But they all credit score, so the fact they are relatively recent wont help. I think you will meet the criteria of a lot of lenders, but you are relying on passing a credit score.

I would imagine there are lenders with better rates than precise available to you.

The fact you have come across precise says your doing some good research as most people would never come across them as theyre not a household name.

Thrugelmir

Your current level of debt maybe an issue as well. As they'll be plenty of mortgage applicants without this burden.

EHJK

The thing is, if I was to get an 85% LTV mortgage then I would pretty much clear the CC balances. However, I suspect the fact that the 5% LTV increase would be considered too risky given the level of debt I currently have and missed payments.

May give Halifax a go, but I don't like going in blind without seeing their current criteria. What benefit would there be, if any, for a broker to submit an application to halifax on my behalf compared to submitting the application myself?

The difference between Halifax and Precise is approximately £300 per month. So I either want to be somewhere in the middle, but preferably at the Halifax end of the scale.

What other lenders are comparable to Precise? I only seem to come across Kensington, although they have slightly stricter criteria.

Thrugelmir

EHJK wrote: »

The thing is, if I was to get an 85% LTV mortgage then I would pretty much clear the CC balances.

Don't budget on mainstream mortgage lenders to provide funds towards debt consolidation.

EHJK

Can you elaborate? I don't see explicit mention in criteria that debt consolidation is prohibited - I will go and look again to be sure.

Are you saying someone like Precise (sub/near prime, or unconventional) would be willing to allow debt consolidation, but not someone like Halifax?

ACG

You submitting an app to Halifax would be no different to us doing it.

We may "package it" slightly different to make the most of good points but it depends if thats possible or not.

Without seeing your credit report its difficult to say really.

Is there any reason why your doing this yourself and not through a broker? Bare in mind we do this day in day out and with all the information infront of us, its possible to make an informed decision.

EHJK

I went via a large broker back in December/January with my eyes closed, and they seemed to be very sales orientated. In all honesty I should have done the research I am doing now back then but isn't hindsight a wonderful thing. Also, I didn't seem all that confident they were listening to my concerns and just trying to get the DIPs. Anyway, we had a DIP approved with Kensington at the time only for a senior underwriter to decline based on the conduct of my bank account in December (extended use of overdraft). Since then a few things have changed and conduct is much better, no more overdraft.

So I may still go down the broker route, but I want to understand anything and everything you brokers ask/tell me so I am informed. Plus, I dislike having to pay broker fees of £2k for something I could do myself. Not saying brokers don't earn their fee in some circumstances. Obviously some lenders only allow intermediaries so I have to swallow the broker fee, but some like Halifax allow public applications.