AIP & HTB Questions

Myx

Hi All

My partner and I are looking at a potential reservation an a new build plot utilising HTB. We have secured an AIP from Barclays (my bank) for the required sum that we would need in addition to the 20% equity loan.

The AIP confirms that final offer is subject to formal application/ underwriting etc etc.

Two questions:

1) The AIP ran a quotation search rather than a full search (which is better as other lenders don't see this should we decide not to go with Barclays). What extra information does the lender see on performing a full search rather than a quotation search, if anything?

The reason for asking is that on my file there are two instances of 1 month missing payments over the last 2 years. One account is a 12 month Mail Order Buy Now Pay Later offer and relates a £4.50 delivery charge that I wasn't informed about. (I have lodged a notice of correction for this). The second relates to a Tesco Credit card I established, the initial payment was classed as one month late as the DD that they put in place was not there in time to collect the first payment, despite receiving confirmation from them that it was. Tesco at the time confirmed this would not affect my credit file as it was an honest misunderstanding but clearly this wasn't the case.

Aside from this I manage my finances carefully, we both have car leases and I have a separate personal loan. I never have knowingly missed any payment or obligation I have agreed to.

Is this likely to present an issue for me at full application or will their credit scoring assessment have factored this in at AIP stage?

2) With regard to HTB and assessing affordability. Which figure is used by Barclays? Do they assess affordability on the 75% lending figure I will be borrowing from them or the full 95% borrowing which includes the HTB deposit? If the latter, is the entire 95% stressed at 7% for affordability purposes?

Any guidance you may have would be appreciated.