DIP with credit check: is this definite?

Moonraker71

Hi, got a decision in principle today from the Woolwich. This is to port my existing mortgage plus an extra £50k of borrowing. Before he inputted it, the in-branch advisor said it would probably be rejected due to my not having been self-employed for long enough -- but he needed to run it through system in order to get ref no. to give to underwriter, who would then review it. However, it went through and was accepted straight away. Advisor was amazed and said must be due to having spotless credit.

My question is this -- because a full credit check was run to get this decision in principle, does this mean I will definitely be accepted when I do the application in full, once I find a property? (Assuming i will still be asking for the same amount.) Or are there still things that can crop up and go wrong at this stage? If so, what kind of things? Thanks in advance for any replies.

ACG

Do you bank with woolwich, they have pre agreed credit limits i think - you may have passed through this? Although i would expect their in branch advisor to know about this.

Woolwich do have a new system in place so the broker may not b used to it, but in saying that a DIP is not definitive. Its usually a good indication but never a 100% cert.

Moonraker71

Thanks ACG. I bank with Barclays, so I'm hoping that will help. (I'm hoping it will get me a preferential loyalty rate too, on the extra borrowing).

The total figure I'm looking to borrow is less than they're technically prepared to lend me, ie 4 x net profit. Plus I have a 50% deposit. So I'm hoping it will be fine, esp as I've had a full credit check now. But just still slightly concerned about the self-employed thing rearing its head I suppose. They ask for three years and I've only been SE for 1yr 9mths.

Thrugelmir

Moonraker71 wrote: »

They ask for three years and I've only been SE for 1yr 9mths.

Much depends on the nature of your self employment and source of the income. i.e. contracted work which guarantees an income.

Moonraker71

Am a freelance journalist and copywriter. About 75% of my income comes through the co. I used to work for before I went self-employed. Extremely well-known and prestigious company, but am only retained on a rolling monthly contract. However, has been this way for 19 months and although they won't commit to a fixed term contract, they say there's no immediate danger of it changing. We've agreed 4 wks notice on either side if anything changes, so it's not that different from when I was working there really.

The other 25% is ad hoc. Commissions for magazines and newspapers etc.

Dave_Ham

I would not pin all my hopes on this as outside their criteria.

I think die to your relationship, they have not asked for proof of anything at this stage and as ACG states they are using a new system which does filter client requirements.

They could easily ask at full application and it could throw it out. Not trying to worry you, just really is unknown and not enough feedback on here as yet about their direct new system they are using.

Clearly the advisor is shooting in the dark too and purely guessing why the system is not asking for anything.

Have a backup plan before you incur cost