Nationwide 5% DIP approved now waiting - questions

halifax2

Hello

We have had a Nationwide save to buy (5%) account since February and last week we got our DIP approved and have had an offer on a house accepted :-)

However both we and our mortgage advisor thought we could commence with the full application from July but it is actually August, which isnt really a problem because this suits the seller and the estate agents know our situation too so basicly everything is on hold until the beginning of August.

After getting a DIP approved does this mean the full application should go through ok if there are no changes in our circumstances? I work through an agency on a rolling contract the building society know this so an employers reference was asked for and this has been returned, nothing else was asked for.

Really nervous about the next 6 weeks until we can get to the point of full application.

jacobtheamish

I'm sure there will be others on here that will know more than I.
But..

A decision in principle is basically a credit check with one or more of the CRA's and a basic affordability check on earnings against loan amount. There is no verification of your salaries so providing the information you have provided is correct all should be fine.

Most lenders view basic salary differently from overtime, bonuses and commission. I believe a common error which produces an accept at DIP stage and a decline a full app stage is due to the client and or MA not disclosing the correct breakdown on earnings. Obviously Self employment is measured dependant on the flavour, sole trader, ltd company etc.
Good luck

halifax2

thanks for the reply
neither myself or partner earn overtime and commision just basic salaries and these were given on payslips and p60 in the DIP stage so hopefully that shouldnt be a problem

halifax2

Just another question

The estate agent has mentioned that maybe we should get all the solicitors searches done now whilst we are waiting until we can submint the full application in August, Is this a good idea or not?

kingstreet

If you don't get the mortgage, you've wasted the search fees.

I wouldn't, but your call.

In addition, is the vendor looking for a new property? Will they be having their valuation and searches done?

I doubt it.

Dave_Ham

Good old Estate Agents, always trying to help out.

With a 5% deposit, it would be naïve to instruct searches and probably unnecessary at this juncture.

No need to put your money at risk at this point.

In answer to your AIP question, it is highly unlikely your case has been underwritten in full so it is certainly not a firm offer at the moment.

Good luck

halifax2

thanks for the reply......

the seller has found a house and that house isn't in a chain so really we are the ones holding things up now...

the next 6 weeks are going to drag..

does anyone know the percentage rates from a DIP to a full mortgage offer being accepted...

we were told we could borrow upto 140,000 based on our incomes but only need 78000, and we dont really have any outgoing eg car and kids.

only thing I am very worried about is the fact I work through an agency but have been here 15 months now and they will recieved an employers reference stating it will not be due to end.

Dave_Ham

You may well be ok so please take this with a pinch of salt.

In a lenders eye's you have a 5% deposit, which is the absolute minimum amount. So much so that most highstreet banks do not even offer the 5% deposit option.

Coupled with being an Agency Worker (which is higher risk) no amount of statistics are going to make you feel better, as I do not think you would like them.

No-one on here can physically do Save To Buy and therefore we will not know, the 95% LTV we can do are very selective in their criteria.

I think you are in for a bit of a stressful process, silly question but can you not get any support from family etc. for the other 5% as this would make your whole like much, much easier and the rate will be much better.

halifax2

I wish we did have but unfortunately neither of us have a very big family and they dont have much money,

we have managed to save 5200 deposit plus the solicitors fees etc on top so will have a 7%ish deposit but I know if could get to at least 10% it could make a difference.

Suppose we will just have to see what happens and hope we are lucky

Dave_Ham

I understand - good luck fingers crossed

halifax2

thank you for the help