Halifax DIP, mortgages etc

Midwife

We live in rented accommodation with a property we also rent out on a CTL, we're looking to buy the house we live in with a 10% deposit and a combined income of about 55k, affordability not an issue as mortgage payments v similar to rent plus we're managing to save at the same time for deposit. Today we got accepted by the halifax for a DIP :j so just a few questions for you knowledgeable folk.

If we agree a price with the landlord can we proceed to full application and have it ready and waiting (assuming an offer is made) for the point our deposit savings are complete (approx 3 months time) or do we need everything in place before progressing?

Mr midwife has old defaults that have dropped off his credit rating (statute barred) and a failed IVA (also no longer viewable) in the dim past, he also makes regular monthly payments to another lender who defaulted him to pay off the debt (this is also so old it doesn't show on the credit report), what kind of a baring is this likely to have on proceedings assuming credit files are clean otherwise and impeccable conduct in the last 6+ years?

The DIP was submitted by a broker, do the Halifax still have a DIP 'grading' procedure as I've seen mentioned on all threads, if so how do I. Find out whether we are an A/B/C pass? Does it matter?

The amount Halifax said they were prepared to lend us was frankly astronomical, we are hoping to borrow £120k less than the max they said they would consider, is this a positive thing?

I'm very nervous, whilst waiting for the DIP today I must have refreshed my email about 10,000 times and I'm not sure if I can handle the whole application process if it's doomed to failure! Our mortgage advisor is great but I don't want to drive her insane with queries.

Contemptuous

Could you not ask your broker about the pass? Although if Halifax are allowing you to go ahead with a 90% LTV mortgage then that suggests an 'A' pass.

Midwife

I will ask, I just wasn't sure if it was still 'a thing' and didn't want to provoke the '!!!!!!' face from my broker. The DIP doesn't state either way whether it's on a 90% basis so wasn't sure if it's what was being discussed (although afaik it's what was applied for - it's all we've got anyway!)

tonyranks

let me explain how this works
mortgage companies use your credit files for past history and internal files, check which group they are a part of.....
but here comes the problem....there is a question on the mortgage application, have you ever been in an iva or bankrupt ever....thats the declaration they get you on....its how you answer that question

i am not encouraging anyone to lie on an application......thats how they apply the grading so to be totally free its around 12 years maybe less depends on the company

kingstreet

tonyranks wrote: »

there is a question on the mortgage application, have you ever been in an iva or bankrupt ever

Halifax specifically asks "have you in the last six years..." so not such an issue here.

Can be for other lenders though, as you say.

Midwife

Thanks, I've asked the mortgage broker and they said we passed with a 10% deposit, how reliable is the halifax's DIP process?

kingstreet

Not as good as others...

But as it's all they've got, you just proceed as normal.