New Build Mortgage Worry

purchase741

Hi All

I have recently reserved a plot on a new build estate with bellway homes.

Bellway recommended the brokers..."new homes mortgages"

We rang them and discussed our application over the phone after several conversations within 3 hours we had an agreement in priciple from the Halifax for £200,000.

The property is worth £223,500 & we had a £24,000 deposit(10%+)

my main concern is that i was accepted even though i entered into difficulties 20 months ago & partially settled 3 credit cards.

these are showing on my credit file as defaults (but satisfied) - my credit history since has been a1 - i have never missed a payment on my existing mortgage that i've had for 6 years or my HP agreement.... the HP has now been settled.

I dont owe anything anymore & our joint income more than covers the required mortgage(my girlfriend has nothing negative on her credit file or owes any money)

I have read several threads that suggest "agreements in principle" arent very solid at all & i dont want to pay £500.00 plot fee to bellway & £400.00 brokerage fee amongst other things to get to the application stage only for halifax to decline my mortgage based on my credit history!

I confirmed with the brokers that a full credit check HAS been done!

Can anyone offer me any advice please?? am i likely to be declined based on the factors above???

Thanks for taking the time to read this.

kingstreet

Only a soft search has been done if this is a Halifax mortgage promise. A full search isn't done until a full application is submitted.

Defaults in the last three years and a 90% application don't normally go together, but no-one here can categorically tell you a full application will, or won't be accepted.

Make it a condition with the builder and broker that the reservation fee is refunded in full if the mortgage application is declined and the broker fee is payable only when you have an acceptable mortgage offer in your hand.

purchase741

thanks for the advice! much appreciated!

I thought i would have a lot more problems that i actually had.... from your experience would you say a right to buy would be beneficial if i could sell my house & therefore reduce the risk to the lender if they were only giving us a 75% mortgage??

or is it unlikely that i will be accepted at all with defaults??

kingstreet

A right to buy?

Sell your home?

I'm completely confused now. Your broker has all the information we don't see on here, so I can only suggest you voice your concerns to them. After all, that is what you are paying them for...

purchase741

thank you.... i have just phoned the brokers & asked him several times about my credit check - he assures me the only thing that can go wrong is if my income doesnt match up with what i have stated & full credit checks have been done & accepted by the lender.... still a bit dubious but will have to wait & see! thanks again!

as400

Don't use Bellway brokers there is no need.

Ring Skipton, its free and they will do the 'in priciple' bit quickly for you...very straightforward.

kingstreet

as400 wrote: »

Don't use Bellway brokers there is no need.

Ring Skipton, its free and they will do the 'in priciple' bit quickly for you...very straightforward.

Skipton?

90% with three defaults in the last two years?

A wasted search footprint, IMHO.

haras_nosirrah

90%, newbuild, halifax

don't think those three go together - isn't halifax 80% on newbuild

chanz4

80 % halifax is on houses new

kingstreet

Newbuild builder/broker panel Halifax is upto 90% standard and also HTB - MG upto 95% on newbuild flats and houses.