DIP or full application stage

heston2014

Hi

Have recently gone through a mortgage broker (Whole of market) to apply for a Right to Buy mortgage. We were initially declined by Natwest (applied directly) due to an IVA note of correction on hubby's Equifax report. IVA completed in 2011 but he didn't realise that it doesn't automatically clear from file. Both have good credit rating although I have high utilisation of credit (Loan and credit cards totalling 20k) but never missed any payments or maxed out available credit. Passed affordability as both have good incomes.

A week ago found local broker and said can get us a DIP. Provided background info and made a few phone calls, found us a lender who was 'happy for our case to be submitted'. Requested all the paperwork, 3 months payslips, P60, bank statements, RTB offer letter, copies of credit reports and passports.

Submitted 28/05 - got a call later that day to say all good news and ready to upload our docs and asked for debit card for valuation although our case hasn't been agreed at that point.

Next day, checked credit report experian and there was a first mortgage and identity search by Nationwide. That was only when I found out who the lender was. At that point, no written confirmation received but was asked to obtain IVA release letter and last year payslips showing hubby's bonus payments.

Provided, still no written confirmation and broker asking for fees to be paid. I refused as we haven't been given any reference numbers or a DIP certificate as such. Anyway, broker then explained that our DIP was submitted online, but 'referred' as apparently, RTB applications get referred automatically.

04/06 Broker asked for 12 months bank statement showing rent payments, RTB offer letter and a letter from hubby explaining reasons for entering into IVA.

Sent and now awaiting to hear back!! I asked broker if we are supposed to be at DIP stage (and credit searched), why are we being asked for more documentation when we haven't even achieved a straight yes for DIP? I asked if this is a full application and response was "more or less" and that it is a good sign that they are asking the documentations now.

Are we at DIP or full application stage???

I am tempted to contact Nationwide directly to check as we have the M reference number. Is this a wise move or just have faith in broker since we haven't paid fees yet and they are still working on us?

Is it a good sign that Nationwide has asked for the latest additional documentation?

Mortgage we are after is 97500 (57% LTV)

As we were declined by Natwest (who we bank with for the last 13 years!!!), I have been stressing about too many credit searches and fearing another decline.

Do Brokers normally seek eligible lenders that meet our criteria before approaching them?

I thought that my high credit would be the issue, but it seems that the IVA has been our biggest hurdle so far.

No DIP certificate, but I have Key Facts Info doc which after day 2 I had to query and asked for!

Any ideas?

Are we close to a decline or accept with Nationwide??

kingstreet

When a Nationwide DIP result is "refer," it triggers all the requirements you would normally see for full application;-

payslips
bank statements
proof of rent
etc.

It is fully underwritten, so once accepted the mortgage is subject only to valuation.

In such circumstances, I would gather all that and upload it and be ready with card details for booking and valuation fee ready to submit the full application the minute it changes to accepted.

I would have spoken to the lender and ensured they expected the case to be accepted, before I embarked on speculative credit search.

heston2014

Thanks Kingstreet!

I was worried because I initially thought we were only at DIP stage and as we haven't had a Yes for that, I didn't think we would go to full application yet.

I am keeping my fingers crossed that Nationwide would approve us but it is the waiting that is so stressful!

Is it a good sign that they asked for IVA letter explanation??

Kind regards.

kingstreet

That would be an automatic requirement if there's an IVA disclosure, it's just another requirement, same as the others.

Dave_Ham

Nationwide are quite flexible in what they will look at with historic adverse, but the underwriting of a referral is painful and terribly slow.

They do not like high unsecured balances either, but your loan to value will help

When did the IVA start?

Do not call Nationwide directly as hardly ever ends well and sours a broker-client relationship.

Speak candidly with your broker but I would be surprised to see a quick decision

Best of luck

heston2014

I see so there is no guarantee we are on our way to an accept.

Our brokers sounds positive although it doesn't give me much confidence getting another "refer".

Oh well, best wait I guess.

Thanks again.

heston2014

Hi Dave_Ham

IVA entered 2005 and released Dec 2010

Have managed to maintain a good credit rating except now it's dropped to fair due to the recent searches but have not missed any payments in the last 6 years.

Our brokers seems to think that it's all positive but without any written confirmation, i have my doubts.

I also read from other posts about Nationwide sending texts when application received/valuation booked/offered - does it apply with broker clients?

Should I expect any communication from Nationwide or only through broker?

FTB, totally clueless of what the correct process is! :-(

Dave_Ham

If the broker puts in numbers and ticks boxes, you will get updates. You are a fair way off this point so respectfully suggest you are jumping the gun as refer means underwrite upfront and this is weeks not days.

If your accounts are all well conducted and improving then will be ok, high levels of unsecured debt on one app and discharged IVA on other suggests life event/a or living beyond means and they will take a view on the detail

You need to assess your broker confidence or if this a punt for them.

There should be a decent solution subject to details, whether this is Nationwide we will see in due course