AIP refered, now require full application......

mrjaywarren

Hi,

I really hope someone can help,

My partner and I are applying to port our mortgage to a more expensive house.

Our AIP was processed and we were told that our application would be referred. meaning it needs to go through a full application to see if we are able to get a mortgage.

I have been told that I cannot make an offer without an AIP or at least it wouldn't be taken as seriously.

I have also been told that we cannot make an application without an Offer accepted.... This feels like a chicken and egg situation with the twist that niether the chicken nor the egg and exist without the other...

Any advice?

amnblog

Nationwide Building Society?

mrjaywarren

Barclays...

amnblog

OK - referral rather than automatic decision is not unusual for Barclays - a good chance it will pass when you go to full application.


Get a broker in the loop to satisfy the estate agents and the broker can then also manage the Barclays process correctly.

ACG

I thought barclays when reading.

Never had a decision like that fail at full app - I would be pretty confident it will go through.

mrjaywarren

The reason given by Barclays was a referal code relating to a "missed payment". On reviewing both our credit files we can only see that I have 1 red mark for having a significant amount of "unsecure debt" and my partner has 2 debts (1500, 2300) which are being managed by a debt consolidation company in that they are defaulted but a settlement plan is in place.

Does the above cause us any problems if it has gone to refer and not decline already?

amnblog

You should not have been going to Barclays in the first place with that on your record.


Did you go direct, or use a mortgage broker.

mrjaywarren

I went direct, I have a mortgage with them already with. 4k+ ERC....

The defaults were over 4 years ago and have been managed on her behalf by a debt consolidation company, we have the means to settle them today so we shall.... I am hoping that the criteria allows us to get approved... Default was over 4 years ago and will be settled at time of full application?

amnblog

Even if you are trying to stay with the lender a mortgage broker would have been useful to you on this case.


I wish you well.

Dave_Ham

Without being negative, please have a back up plan for this and do not get too advanced on your sale until you have received the mortgage offer.


Understand why you have approached Barclays, although technically this is outside of criteria.


Good luck

ACG

Im surprised it referred and wasnt a straight decline.
Settling it now wont make much difference I wouldnt have thought as it wont update on Woolwich system until your credit report updates.

As per Daves suggestion - I would be looking at plan B assuming you still want to move with £4k ercs.