Approved in principle

Black_Eyeliner

My husband and I were approved in principle for a mortgage yesterday. Does that mean that we definitely have a mortgage? Will they credit check us again?

Dave_Ham

No and Yes.

Who is the lender as some DIP's are more reliable than others and what are you worrying about credit file wise?

Black_Eyeliner

It's with Nationwide. I'm struggling to believe that we've been accepted as I'm an ex-bankrupt.

Dave_Ham

Nationwide can be ex-bankrupt friendly, but typically when you answer yes to the previously bankrupt it refers rather than accept. I expect this is 6 years + ago and either you did not tell them or the adviser chose not to declare it to benefit your application in the short term.

Nationwide DIP is one of the more reliable ones, check the previous bankruptcy has been declared though.

TheMortgageAdviser

No, the clue is in the name....

It's just "in principle". The good news is that you have passed their initial credit and criteria checks. Only once you put a full application in and send in your payslips, bank statements etc. etc. and it has been full underwritten will you have confirmation that you have been approved.

If it was a soft footprint search (Halifax use these) then they will do a hard footprint search as they underwrite so yes will credit search again. Otherwise if they already did a hard footprint search they don't normally, but reserve the righty to do so right up to completion.

If you have passed the agreement in principle and know that a) the information you declared was correct and true and b) you know you don't have any credit problems, then you should be fine. :-)

TheMortgageAdviser

Sorry was typing at the same time as Dave Ham. Agree with regards to the Bankruptcy. You need to check.

Black_Eyeliner

My mortgage adviser knows my credit history, so I assume she declared my ex-bankrupt status. If she didn't, surely it would come up on the credit check? I was discharged three-and-a-half years ago.

Dave_Ham

You need to check, Surprised you passed immediately (if at all) with that recent history.

Ask for the Decision In Principle certificate.

Are you paying any fees to the broker upfront?

Black_Eyeliner

I have a decision in principle certificate, which says 'we are pleased to confirm that, after a credit search and credit score, your application has been approved in principle'. It then goes on to request our sot recent payslips.

The broker does not charge us any fees at all, and is from a very reputable organisation.

Do you think that a bankruptcy in 2007 would still be considered as recent?

Dave_Ham

No, sorry thought it would be more recent than that.

I suspect he has not declared the bankruptcy, as this would have referred first in my opinion.

Dave_Ham

But either way, Nationwide is a sensible home for this case as they do consider thoughtfully ex bankrupt applicants.