Homemover DIP Halifax

puregeordie

Just got a DIP with the halifax, I already have a mortgage with them and would like to move up the property ladder.

My first call to the Hailfax for years and know lots of problems that people have regards getting a decision in principle then it all goes pear shaped.

I got an email through saying alls good and they just require the below to progress, and don't appear to need anything else, I've also heard about scoring A B or C and I have no idea what I am?

All they needs is this,

The next steps to progress your application are as follows:

• Collect the address details for your property.
• Collect the valuation fee by debit or credit card.
• Take solicitors details.
• Take direct debit details for the mortgage.
• Input employment details including addresses.
• Discuss your Buildings & Contents needs and get a quote.

Should they not ask me for anything else? Guess I'll just have to wait and see when I finds me a nice hoose!

Thanks.

kingstreet

You only need to worry if you have historic adverse credit information registered against you which is not visible to the soft search.

An existing borrower with a good record will have no problems.

I would not choose Halifax for its products at the moment, so you may find better deals at application time by shopping around.

puregeordie

kingstreet wrote: »

I would not choose Halifax for its products at the moment, so you may find better deals at application time by shopping around.

I chose the halifax because I'm already with them so thought it would just be easier.
And that the deals they have look good to me.

I think a 2 year 2.79% and no fee is OK, I don;'t think interest rates will rise and rise quickly so after two years I'll proably look and see what's on offer and again may just stick with a 2 year tracker. If I were to stick to a slightly higher rate and get a fix I think I would be checking money away.

I also think they may drop a little further in the comming months when I may well go for full application and they might have dipped further!

For info when they do a Decision in priciple they just do a soft search so its not on your credit searches.

Thanks.

kingstreet

The value in paying a product fee depends on the amount you will borrow and how long for. A five year fix with £1,000 fee can be repaid over five years with a rate which needs to be only £16 per month cheaper.

A two year fix with £1,000 fee needs to be over £40 a month cheaper to make the rate saving better.

puregeordie

OK, here's some figures,

£120k max over 20 years + 40% deposit (probably £110k-115k loan depending on what type of house I go for), using my house equity as the desposit.

I think when a product has a fee I work out what I would pay with a fee and what I would pay without a fee and it generally works about about the same or a lttle more expensive with the fee added on over the speciail rate period.

With the conditions of the current market I think that sticking on a low rate tracker for the next several years at least will save me a few quid. thanks.

kingstreet

My personal opinion - and that's all it is, is that rates will not go any lower in the next few years, so a tracker product appears to have no upside, if the fixed equivalent is the same rate.

I'd therefore choose a fixed rate over a tracker if the rate and fees are the same. Like I said, that's my opinion and we all have one of those...

To roughly work out the cost of the mortgage, I take the interest payable over the rate period and add to it any fees. This gives a cost which can be comparable. However, a more complete analysis takes into account the follow-on rate when the rate ends, early repayment penalties and the amount outstanding at the end of the fix/tracker.

Only you can determine if a two year rate period best suits you, or if a longer term product would be a better option.

puregeordie

Thanks for advice Kingstreet.