First Time Buyer - what checks after decision in principle?

amnblog

Regular posts on this forum and calls we get into our office suggests this happens on a regular basis. Particularly in estate agents offices.

Because Halifax run a 'soft footprint' naive brokers think it's worth a go and the client might get lucky. It's what you would do if you don't know anything else to do. You still need to run an application with a 'hard footprint' (showing on your credit file) to progress anything.

For me such a DIP is not a 'yes' or a partial 'yes' and achieving nothing.

To say, 'we will see what Halifax say then shop around ' is just plain embarrassing.

Has this broker even taken any notice of our posters credit file?

sparks11

Well I would hope she took notice of it as we sat down and had quite a long conversation about it! As I said, she also mentioned a smaller lender that do accept some adverse credit. I came on here for advice, not to be subjected to a debate about whether or not Halifax DiPs are worth anything. I started today thinking I was actually in an OK position. It was 34 months ago this happened, nothing else bad on my report etc. Nobody has actually answered anything I've asked.

sparks11

I showed her a copy of my report too. Since then I've been on all three agencies websites and they all show good scores (I know this doesn't mean anything) and no other credit problems. I have other credit accounts that are in good order, have recently been given a Nationwide credit card with a big limit. So I must have something going for me.

betmunch

sparks11 wrote: »

Well I would hope she took notice of it as we sat down and had quite a long conversation about it! As I said, she also mentioned a smaller lender that do accept some adverse credit. I came on here for advice, not to be subjected to a debate about whether or not Halifax DiPs are worth anything. I started today thinking I was actually in an OK position. It was 34 months ago this happened, nothing else bad on my report etc. Nobody has actually answered anything I've asked.

Because we cant answer the questions you've asked.

We've tried to explain why hence the info/debate on Halifax.

If you had a DIP with any other lender I would be quite positive about your chances, but you dont.

All we have to go on is you have a minor credit issue and a DIP with the only lender who is likely not to pick it up!

In my mind you have been let down, this should have been explained properly to you, and it wasnt. The course of action has only led to doubt once the info about the Halifax DIP was revealed.

sparks11

So if I was your client what would you suggest I do? My broker had to start somewhere. I couldn't put an offer in without a DiP. She is aware of my past problems and made a decision based on that. Now, I either apply for a mortgage with someone or I carry on renting. My question of whether I should try other lenders or even if Halifax are likely to say no once they've done a full check can surely be answered. I'm not asking anyone to hang their hats on a definite yes or no. I know only the application will tell me that. But as experienced mortgage brokers, you must have had some experience of similar cases.

sparks11

If I need to give more information for people to be able to give an opinion then tell me what I need to tell you. I'm not a mortgage broker, I don't know what it is I need to divulge. If anyone needs any info on the material properties of silicon chips, I'm your girl, but this is all new to me.

betmunch

I wouldnt name a lender on here for fear it could be taken as advice.

Absolutely they had to start somewhere, and for the purposes of providing a DIP for the Estate Agent theres nothing wrong with whats been done there.

But you were asking about the likelyhood of being accepted which is what we cant answer. Knowing the way Halifax works and that you have moved house I would not have used them as you need the full app to get a proper decision out of them

As for trying other lenders, I would. I fully expect your broker will suggest another lender once you go back to them this week, which then begs the question why didnt you just DIP with a lender that will give you a fairly definate answer in the first place given your issue and Halifaxs process.

I doubt anyone us going to encourage you to give any details as it will lend to the expectation that some regulated advice will be given, which no-one here will risk doing.

I will leave you with this. I do believe you will find a lender, it may even end up with being Halifax. Your DIP is worthless with respect to whether they will give the mortgage due to your address history. Having said that its been accepted as proof of funding by the EA so not completely worthless. On Wednesday you are seeing the Mortgage Advisor and they will bring you up to the position you thought you were in.

Just chill out until then, and good luck. Please keep us posted

sparks11

Ok thanks, understood. I do appreciate the feedback and will indeed let you all know. Worst part is that we're going on holiday on Friday so I need to try to relax about the decision until we're back!

betmunch

Remember, theres nothing you can do about it while your away. Give your broker everything and then some.

Enjoy the holiday, and catch up when you get back

Thrugelmir

sparks11 wrote: »

If I need to give more information for people to be able to give an opinion then tell me what I need to tell you. I'm not a mortgage broker, I don't know what it is I need to divulge. If anyone needs any info on the material properties of silicon chips, I'm your girl, but this is all new to me.

Little point in over thinking what may or may not happen. Lenders set their own criteria according to their own internal policies.

The indicator suggests that you exceeded your agreed overdraft facility for 5 months rather there being any "late payments" on the account. As overdrafts require no fixed repayments.