Is Natwest agreement in principle trustworthy??

FeathersForever

Hi! So far I have tried for a decision in principle from Nationwide (declined, I'm pretty sure due to lack of credit history - I've never had a credit card or loan, and a lot of the places I've lived it's been someone else's name on the bills. I've obtained a decision in principle from HSBC, which was quite low compared to my affordability (presumably reflecting the lack of credit history)

I've now tried Natwest, and they've given me an agreement in principle for a much higher amount (still under my affordability according to calculators - I deliberately asked for less as I don't want to be stretching myself). However, the lady on the phone didn't ask many questions compared to Nationwide, so I checked and she said they hadn't done a credit check - so basically it was a fairly in-depth affordability check.

My questions are:
(1) If I want to make an offer on somewhere, do estate agents even accept AIPs that haven't been credit checked?? I guess they must, or no-one could buy with Natwest mortgages but . . . it seems weird.

(2) Given the problems getting an AIP, am I setting myself up for trouble if I make an offer based on the one from Natwest? Or are Natwest genuinely more likely to say 'yes' (as they advertise themselves to).

I am in the process of getting hold of my credit score from experian, and if needs be I will get a credit card in order to develop a history, but that's going to take ages and I really need to get moving!

If I went to a mortgage broker, are they able to help people without much credit history get mortgages? Or are they solely to try and help you find a good deal?

I am viewing two places tomorrow, both of which look like they have potential - would be good to know if I can make an offer or not!!!

holly_hobby

If not even a basic (public domain) credit search was done as part of the AIP, its not worht much, and no gte you will obtain a mge on submission of a full application.

Are you on the voters roll where you live and prev homes ? (this gives some trackable info to the lender)

Do you have verifiable rental history (ie from a letting agent ?) or other credit/financial history ? (utilies, etc)

I assume you have no adverse credit history in the alst 6 yrs ?

Furthermore, if you have moved about quite a bit over the yrs, never been on votors rolls, never had anything in your name (inc utilities) - yes you will struggle with any credit scoring lender, as they have nothing to assess your attitude to financial commitments to.

IF this is the case, you will want to consider a non-scoring lender (using smaller buildings society's such as Coventry) - and I would suggest using a broker if this is the case to ensure that you don't approach lenders whom you've no hope of passing a basic score with them (which is not the same scoring system as the CRAs use, as it is based on different cirteria ).

Hope this helps

Holly x

FeathersForever

Thanks for the reply.

I am on the voters roll where I currently live, and was in my last place but one . . . before that I was registered at my parents.

All my rental history has been legit - i.e. there have been landlords and contracts (although not through agencies, tended to go the gumtree route ) I have paid council tax in a few places, and my name has been on some bills, so I am not totally invisible.

There shouldn't be anything nasty lurking - have never had a loan (aside from student loan), never had a credit card, never gone over my overdraft (and very rarely used the overdraft facility at all - and it is all paid off now). Have paid my mobile phone contract on time, along with bills and council tax . . .

The Nationwide guy did say that Nationwide are very cautious.

I will look into non-scoring lenders, although I am guessing they will be more expensive?

Thank you for the info (I didn't even know non-scoring lenders existed )

holly_hobby

Not necessarily with any higher rates than other scoring lender, although of course all lenders price the products differently - and of course you may yet sail through the Nat West full score - but its handy to know that there are alternatives, if any NW rejection is in relation to a sparodic/restricted financial history, and not based on anything negative in relation to defaults etc.

Go and see the house, make your offer, and then submit your full app to NWest (advise them to hold off on survey and booking any funds until you have passed 1st stage underwriting, which means you'll keep lost fees down to the minimum if it does all go Pete Tong) - you're not legally bound to pch the property until you exchange, so if your app is rejected there's no harm done, apart from wasted time and initial disappointment - you can then explore non-scoring lenders (if appropriate).

Hope this helps

Holly

FeathersForever

Thank you :-)