April 26th implications

Mortgage_Mark_2

claire_n037 wrote: »

How awful, we were always told student loans wouldn't count!!

Can you get a mortgage approved without having the specific property you want to buy?

You can never get a mortgage approved without a property.

Mortgage_Mark_2

JohnDoe1 wrote: »

What about Agreement/Decisions in Principles?
Are they worthless now?

AIP/DIP's are generally and have always been generally worthless in the grand scheme of a mortgage being approved anyway. They're merely a credit score, so you could obtain a DIP for a mortgage that you would never qualify for based on your employment status/salary etc, and still 'pass'.

It gives a useful indication of the outcome of the actual credit scoring, but that's it.

kingstreet

JohnDoe1 wrote: »

What about Agreement/Decisions in Principles?
Are they worthless now?

If a full application hasn't been submitted before the lender's M-Day, it will have to be resubmitted under the MMR regime.

Abbey/Santander is closing its online system on Friday and will reopen it under the new rules on Monday next week.

JohnDoe1

Mortgage_Mark wrote: »

AIP/DIP's are generally and have always been generally worthless in the grand scheme of a mortgage being approved anyway. They're merely a credit score, so you could obtain a DIP for a mortgage that you would never qualify for based on your employment status/salary etc, and still 'pass'.

It gives a useful indication of the outcome of the actual credit scoring, but that's it.

I thought an AIP/DIP included things like employment status and salary (provided you put the truthful numbers in), and not just the credit score?

JohnDoe1

kingstreet wrote: »

If a full application hasn't been submitted before the lender's M-Day, it will have to be resubmitted under the MMR regime.

Abbey/Santander is closing its online system on Friday and will reopen it under the new rules on Monday next week.

If that is the case then all current AIP/DIPs are worthless unless you get your full application in before deadline day, as the criteria for approval will have changed?

kingstreet

That's what we're being told, yes.

Mortgage_Mark_2

JohnDoe1 wrote: »

I thought an AIP/DIP included things like employment status and salary (provided you put the truthful numbers in), and not just the credit score?

The systems do ask for it but they don't assess anything other than what you've told the 'computer'.

amnblog

ACG wrote: »

Your spreadsheet could be manipulated - lenders have and still will go off statements. However i think they will be more thorough with statements going forward.

I read an article yesterday one lender has said they think their appointments will take over 3 hours!!! Ridiculous.
Because they will take 3 hours, they do not have the staff and so there will be a backlog to make appointments.

Not sure how true that will be but it came from one of the lenders directly.

I understand that one major lender is today booking in branch mortgage appointments for the 26th.

3 week wait and 3 hour meetings

Have fun going direct to lender

amnblog

Worth a read for any borrower thinking of going direct to lender

http://www.mortgagestrategy.co.uk/blogs/regulation-blogs/brokers-cancel-that-summer-holiday-because-things-are-about-to-get-busy/2008755.article

Leon_W

It certainly is good news for brokers.


I can't imagine many people will want to sit through several endless meetings discussing how much they spend on haircuts with every direct lender they think they might get a mortgage with.


One call to a broker and it's job done.