Will we get our mortgage !

bgqs

We have bad credit and have been advised by our mortgage broker that we would be best suited to a sub-prime lender.

The broker has successfully managed to get us an Agreement-in-Principle (AIP) with Southern Pacific Mortgages (SPML). The broker has used a packager and we have been advised that the packager is actually an underwriter for SPML.

We completed the packager's application forms and supplied the relevant documentation as requested by the packager and we have now been advised that the documentation and application form has been forwarded to SPML.

We have not been told whether the mortgage has accepted. All we have been told is that the forms have been sent to SPML. Once SPML receive the forms, the general turnaround time for the issue of offer papers is five days.

Does this mean we have the mortgage ? Surely, if the packager is the underwriter, then the credit checking process has already been undertaken ?

If anyone is aware of the normal process regarding mortgage applications, then please let me know as we are not sure whether we have actually been accepted or not !

Thanks

JoeK_3

Has the property been valued?

Undrewriting a mortgage is based on the applicants circumstances and the property taken as security.

JoeK

bgqs

Yes, a survey has been undertaken and a copy of the survey has been included with the documentation that was sent off to SPML by the packager.

The survey basically concludes that the value of the house is worth the amount offered.

Just to let you know, we are in Scotland so obviously upon conclusion of missives, my offer is legally binding.

We have had verbal acceptance of our offer and have to formally accept by next friday but am reluctant to do so if there is a possibility that the mortgage could fall through !

Any help/advice would be greatly appreciated.

Thanks

JoeK_3

Chill and let it all happen.

Unless there are any issues that crop up, the next step is an offer from the lender.

Regards

JoeK

bgqs

Okay excellent. Do you think that SPML will be running their own credit checks etc or will they simply look at the results that have been sent to them by the packager ?

ss1973

Hi bgps,

From my experience over the last 6 years of being "sub-prime" you'll get your mortgage. It just takes a bit longer than a normal mortgage. I've had 4 mortgages with sub-prime companies and they've all come through - the last one last year was really quick, (offer over the telephone to my advisor within the week) but the first one took forever.

Could you chase your advisor and get some updated info from him?

Good luck, S

JoeK_3

The packager should have conducted a credit search before submitting it to the lender.

JoeK

bgqs

Okay...I need someone to settle my nerves....we have received the offer papers and are due to complete on Friday 20th July.

It is now Wednesday and a copy of our building insurance policy schedule made in the interest of SPML (Our Lender) has been provided to our lender...No further documents have been requested by SPML.

The funds are due to transfered by CHAPS...How long does CHAPS take as our solicitor is yet to receive any funds ?

Also, I have heard of bad stories where SPML hold borrowers to ransom demanding additional monies prior to the release of funds....Money I simply do not have...

As we are in Scotland, we are now legally binding and could stand to be sued if our mortgage falls through at the last minute....

Any help, advice or direction would be appreciated...

Thanks

JoeK_3

CHAPS is a system used for high-value transactions, where money is transferred from one bank to another on the same day. http://www.financial-ombudsman.org.uk/publications/ombudsman-news/42/42_automated.htm

Relax, you're nearly there.

JoeK

bgqs

Cheers Joe, what is the likelihood of the mortgage being withdrawn at this stage ? Is it common ?

JoeK_3

Why do you have this inbuilt fear?

A mortgage offer can be withdrawn at any time until completion but is rare unless someone spots something wrong like fraud or deceit.

Go and count some sheep and have a good nights sleep.

JoeK