Would this be an unwise move?

fluffpig

Id really value the brokers opinions on this

I want to put an offer in on a house ive seen and can (just) scrape a 15% deposit

My problem is a past IVA that came off my credit files in March 2012. Ive had no adverse credit issues since and my files were all green ticks the last time I checked

Ive read some positive things about the Nationwide giving mortgages if credit files have been clean for 12 months for people in my position and just wondered how bad the effect would be if I applied to them and got turned down?

I know the advice is to see a broker, but ive read different things on the internet (some say dont bother with under 20% deposit...others seem to indicate 15% may be ok) and I really dont know where to start...:(

How bad would one decline be if I went down the broker route afterwards?

Dan-Dan

fluffpig wrote: »

Id really value the brokers opinions on this

I want to put an offer in on a house ive seen and can (just) scrape a 15% deposit

My problem is a past IVA that came off my credit files in March 2012. Ive had no adverse credit issues since and my files were all green ticks the last time I checked

Ive read some positive things about the Nationwide giving mortgages if credit files have been clean for 12 months for people in my position and just wondered how bad the effect would be if I applied to them and got turned down?

I know the advice is to see a broker, but ive read different things on the internet (some say dont bother with under 20% deposit...others seem to indicate 15% may be ok) and I really dont know where to start...:(

How bad would one decline be if I went down the broker route afterwards?

Scrimping at the start could cost you more in the long run

use a reputable broker from the start is my advice

Dave_Ham

One decline would not be the end of the world on your credit file, this house specifically may be a problem though as the vendor/Estate Agent may lose patience.

Nationwide typically take a while to underwrite an EX IVA case and will ask for all sorts of paperwork and documents. Therefore, the seller may be unwilling to await a second application.

I would suggest this is just about achievable with a 15% deposit and certainly Nationwide would entertain the application with decent rates, although not sure whether they will accept and that will come down to the detail.

One decline will not be a killer and it is likely it will just be one hard search on your file.

Good luck

fluffpig

That does sound a bit more hopeful:)

Would I have to get a DIP or would it be straight to a full application? If they gave me a positive DIP would it be likely to be turned down at a later stage?

I really have no idea how this works...which definitely suggests I need a broker and I cant believe im actually thinking about doing it...but this house has just gone on the market and ticks every single box!!

Dave_Ham

I am not sure how they would treat it directly, from a broker perspective you would declare the IVA and then it would almost certainly be referred.

They would typically underwrite at AIP, although this would not be a given that they would not request more at Full Application.

As suggested, in this situation paying a broker may prevent going direct and it ending up being false economy; especially if you lose the house.

One thing to note, do not tell the Estate Agent about the IVA (although sure you would not)

fluffpig

Thank you Dave:)

TBH I think I would be cutting it stupidly fine...the deposit would need to be 18.5K and that is literally all I have at this moment in time although I am saving at a rate of £750 per month so would have more by the time I came to exchange

I think the attraction of the Nationwide is that they dont seem to have massive set up fees (aside from the fact that they might entertain offering me a mortgage in the first place) and so It might just be doable.....just

I think the estate agent might know about my IVA as he sold my house in 2009 when I used the equity as a settlement....hope he hasnt got a long memory!!