mortgage application - getting worried

fragmast3r

Hi all,

wasnt worried about my mortgage application, until i started looking on this site, now I see halifax, gives AIP pretty easily,
have spoken to my MB and he reckons, everything will be fine, just wondering if any MB's here would agree?

buying a newbuy house,
75% mortage £159000 (house £212k)
20% equity loan and my 5% deposit ,

recently sold my house, but as we couldnt find one we loved, we went into rented (buyer had no chain and we didnt want to lose sale)

I earn £41k and wife £5k per year , no loans and no high amounts on cc'c (put food on card, and that gets paid at end of month) currentlyy has £350 on.

My mp got me an AIP and has submitted a full application, i was asked for a couple of extra items a few days later to be copied and forwarded to him at the request of halifax,
they then asked for my £430 valuation fee and did the valuation yesterday.

see below for my experian score and stats



Experian score of 999 ( was 947 in jan, been rising since)

Number of credit accounts (including those settled)18 (14 are settled) 2 bank accounts / 1 visa card / 1 store card
Amount of available credit (excluding mortgages) £3,242
% of your total credit being used (excluding mortgages) 8%
Amount of outstanding debt (including mortgages) £298
Number of accounts overdue 0
Number of missed or late repayments in the last year 2 ( went overdrawn for 1 month and forgot to send CC payment , but paid off the full balance the next)



searches on my file

Searched on: 03/05/2013
Searched By: BANK OF SCOTLAND PLC
Application Type: Mortgage Quotation



Amount: £159,000
Term: 025 months
Searched By: HALIFAX MORTGAGES
Application Type: Unrecorded Enquiry


Searched on: 02/05/2013
Searched By: BANK OF SCOTLAND PLC
Application Type: Mortgage Quotation



Searched on: 02/05/2013
Searched By: BANK OF SCOTLAND PLC
Application Type: Mortgage Quotation

thanks for any advice.

hamster2013

Bar the experian - that would play little on the decision

the key factors are:
1. you have no debts, bar the 'virtual 0% loan' of £42.4k representing the 20% deposit
2. you earn £41k and are asking for £159k - so 3.8x your annual wage

Bank would charge an interst APR of lets say 4.5% over 25 years, that would represent £883 monthly repayment
The £42k goverment loan would represent around £140/ month (an increase marginally after a few years.... but lets leave it to this for now)
so total outgoing = around £1025/month

your monthly net at around £2558 would just about be ok for a lender.... the £5/annual of your wife will probably put it towards the better position

what you dont mention is if you have any other dependants - (i.e kids/other family members - parents)
if you are of an age where they would consider you to start planning a family ...etc

I wouldnt worry too much... and stop stalking your credit report - it really doesnt matter that much: they would only use that if something nasty showed up on it - but not really take it into account if it was blank or 'high' as you claim... it doesnt really mean anything in terms of affordability or risk the bank is taking. You managing a credit card really well and paying your few hundred £ bills on time is different to talking a £xxx thousand loan and paying that off -so bank has to be sure it will not make a loss.

fragmast3r

should of said 3 children, 15,12 and 2 , thanks

Abu-Dina

fragmast3r wrote: »

My mp got me an AIP and has submitted a full application, i was asked for a couple of extra items a few days later to be copied and forwarded to him at the request of halifax,
they then asked for my £430 valuation fee and did the valuation yesterday.

When we submitted our full application to Halifax we paid for the survey on the same day. But the fact that they've asked for the money is a good sign IMHO.

Out of interest, when you submitted your application what information did you give to your mortgage broker and what else did Halifax ask for?

fragmast3r

we supplied id, bank statements, payslips, p60 for last year, they then asked for proof of deposit, as a lump sum was paid into my account, rather than showing it as saved over a period of time, so gave them a copy of our solicitors fees breakdown on the sale of our house, which showed the money (equity) from our house, matching the figure paid into my account.

fragmast3r

Happy days, broker has just phoned, they have received full offer from Halifax now, they have also posted a copy to me and my solicitor, start packing again now

Noddy32

Great news. We are in a similar situation. Was there ever a 'hard print' on your credit file or just mortgage quotations and unrecorded enquiries?

fragmast3r

all it ever said was the 4 searches, 3 saying mortgage quotation and 1 saying unrecorded (these were done on 2nd and 3rd of may) and we applied on the 2nd may.

hopefully you will get yours, been a very stressfull 3 weeks, they say don't fall in love with a house, but both the boss (wife) and myself loved this house from the time we sat foot in it, ticked every box, and we've not had to compromise any of our requirements, so would of been gutted if the mortgage was declined.

j

Noddy32

My report is the same. The valuation is being carried out tomorrow so we're hoping to hear next week, got to factor in the bank holiday which will undoubtedly hold things up! Good luck with the move and all the best for the future in your new home

f1rsttimebuyer_2

I recently got an AIP from YBS. The AIP shows as "unrecorded" on my credit report. Does this mean they've done a full credit search and have seen everything it contains?

fragmast3r

i may be wrong, but unrecorded is a soft search, that doesnt delve too deep, I could be wrong though.