Halifax mortgage promise

Stu21986

Hi we've had a mortgage promise from the halifax, and we have paid a reservation fee to the builders which is none refundable. I'm a bit concerned it won't go through as I have default from 4 years ago. Does anyone have any experience of this?

BaileyMoselle

I was concerned that I was on not on the electoral roll. I raised this with my broker after she had confirmed a DIP with Halifax. She said there was no need to be concerned because at this stage the process had gone beyond and passed the credit record checks. In the end I went with another lender with better rates. Have read many questions here about concerns around credit file entries after DIP. If the DIP is a credit record check then what is the basis of such concern? Perhaps a broker on here can verify this?

kingstreet

1. Is the builder providing an NHBC or Zurich certificate? If it is, it is a member of this;-

http://www.consumercodeforhomebuilders.com/index.php

and (AFAIK) is unable to take a non-refundable reservation fee.

2. Halifax DIP is a soft-search and is less reliable as a result. However, Halifax does have form for some historic adverse being accepted and, on the face of it, quite arbitrarily.

The only (recent) issue we've had was a case accepted at DIP, accepted at full application but was manually checked a few days later and some historic adverse was picked up from Call Credit. It was incorrect and the case was later re-instated after being declined after the manual check.

Stu21986

Thanks for the reply, we are doing the full application tomorrow afternoon what will this process entail? Also we have a decent deposit of up to 35% if required but it's a family gift so the less we need the better is this in anyway a guarantee we will be accepted at full application?

kingstreet

The application process varies from broker to broker and lender to lender. Basically, you'll be asked for information and documentation to back up the information.

Hasn't the person doing this with you explained what will happen and what you need to take with you?

Bigger deposit is good. The minimum Halifax will offer is 65%. After that, it's a credit score fail.

Stu21986

BaileyMoselle wrote: »

I was concerned that I was on not on the electoral roll. I raised this with my broker after she had confirmed a DIP with Halifax. She said there was no need to be concerned because at this stage the process had gone beyond and passed the credit record checks. In the end I went with another lender with better rates. Have read many questions here about concerns around credit file entries after DIP. If the DIP is a credit record check then what is the basis of such concern? Perhaps a broker on here can verify this?

It has been credit checked but I think it's a soft check I'm unsure as to what they see differently in a full check?

Stu21986

kingstreet wrote: »

The application process varies from broker to broker and lender to lender. Basically, you'll be asked for information and documentation to back up the information.

Hasn't the person doing this with you explained what will happen and what you need to take with you?

Bigger deposit is good. The minimum Halifax will offer is 65%. After that, it's a credit score fail.

Good but no guarantee? He's only asked for direct debit details employment details and a valuation fee. Have lenders began to ease their critera on who they lend too?

kingstreet

No property or solicitor details? Probably has a copy of the reservation.

Payslips, bank statements, ID, PoA, proof of deposit?

Stu21986

He already has the solicitors details, no mention of payslips bank statements ect as yet do they always ask for bank statements he seems to think that's usually just to confirm any benefits you might receive

amnblog

How big is this default? Was that the only issue on the file at the time?

BaileyMoselle

I went in with three years worth of bank statements for proof of address. Passport. Driver's license (paper and photo). Six months worth of payslips. Last year's P60. Estate agent organised solicitor for me. Broker was recommended by estate agent. I also took in life insurance documents. Probably not the best way but I now have an offer and it is looking good.