Halifax Aip

cherry_three

Hello, I'm brand new to this site and I hope you can help me☺

Me and my husband have been saving for the past few years and he recently done a online Mortgage application. After 10 minutes or so after careful punching in what he earns etc the Halifax said they 'would be delighted to help '. It said they would lend him £139,000 with a minimum of 10% deposit.
This is an application in his name only as I have to give my job up and he is getting a transfer as we are relocating.
Speaking with a friend recently and he said if they give him the AIP he should be fine, but since googling it we have lost confidence as he's had a record of Pay day loans but none in past 3 years. Speaking to another colleague and her and her partner were accepted with Santander, they got accepted and he had Pay day loans just over a year ago.

So are we worrying to much? We have zero debt and have credit cards.
Also I have top marks on my credit report, could I be put on application with Zero income?
And would it help my husband pass? What was most alarming was the fact it said 'with a minimum 10% deposit ' when we know for a fact there are 5% mortgages available.
Or is this the bank compensating for his adverse past?
We have a 10% plus 2 for fee's.

Any thoughts? Thank you so much xx:):)

amnblog

The full story is never revealed with Halifax until you progress to full application.


If you have 10% deposit good luck with it.


If not, you need to consider other options.

cherry_three

Hi amnblog, thanks. So the AIP is what we feared it to be; worthless?
Can you offer any further advice on any of my other queries?
Thanks for your time.

apollo13_2

Speak to your mortgage broker/adviser.

cherry_three

Don't have one as yet. I've heard brokers can charge a hefty fee especially in the adverse game?

Malmo

Have you reviewed your credit files from all 3 Credit Reference Agencies (Experian, Equifax, Callcredit/Noddle)? Only all 3 will give you a full and complete picture of your credit history (the scores are irrelevant and not seen or used by any public or commercial organisation).

The payday loans may or may not be an issue depending on the lender, but we don't know what other credit history information may be relevant.

Many lenders will not like a married couple application in a single name. You will almost certainly need to be on the application.

I'd strongly suggest an independent whole of market broker here. Some charge a fee and this can vary depending on the complexities of your circumstances, some don't. Do the research and don't discount this approach just because of the fees. It could save you money in the long run and take a lot of stress of your hands.

At 95% LTV, lending criteria are quite stringent and applicants generally need to be squeaky clean.

cherry_three

Thank you Malmo! I guess I'm just looking for some confidence from the experts. We have all 3 copies of our reports and the only plemishes between us is my husbands pay day loans, as I said last one was 38 months ago. All other accounts are nice and green. It just amazes me about how these PDLs can effect things but my colleague were accepted with very recent PDLs.

I get now after reading other threads that some lenders din't like single applications when married, as it stands we do not have a joint account and the reason is because my husband is worried it will damage my credit report.

So one of my main questions is that if I was on application and with Zero wage to offer will it help the matter. I mean will they look at overall income i.e 30k and even though I have Zero wage still take into account my credit worthiness(perfect CR) and give us more chance?
I know what I've asked sounds abit backwards but in my logic it would help but you never know with the banks.

Just for the record. We have 10k deposit and looking at a house around 90-100k.
We have 2k for fee's. I have banked with Halifax all my life and he has for 2 years
Not sure how much it helps if you bank with them?

We spoke to a broker and he wanted £800, payed on completion. And I'm naive hence why I started this thread but it seems people in the same shoes have getting mortgages i.e with Santander and not used a broker.

Am I right in thinking we need 2-3k for fee's? We will have no stamp duty because of value of the potential property.
Thanks again x

Malmo

cherry_three wrote: »

It just amazes me about how these PDLs can effect things but my colleague were accepted with very recent PDLs.

The need for payday loans indicates that an individual or household has had or has cashflow problems and/or has likely exhausted other, less expensive forms of credit, such as a formal / arranged overdraft. Hence, the generally negative view of such loans taken by any responsible lender is entirely appropriate.

So one of my main questions is that if I was on application and with Zero wage to offer will it help the matter. I mean will they look at overall income i.e 30k and even though I have Zero wage still take into account my credit worthiness(perfect CR) and give us more chance?
I know what I've asked sounds abit backwards but in my logic it would help but you never know with the banks.

Your own credit history won't hurt the application, if you "fit" the lender's criteria.

Just for the record. We have 10k deposit and looking at a house around 90-100k.
We have 2k for fee's. I have banked with Halifax all my life and he has for 2 years
Not sure how much it helps if you bank with them?

It's not as big a positive factor as some people think. If anything, it can be detrimental if you have demonstrated less than exemplary account conduct & management with the same firm.

We spoke to a broker and he wanted £800, payed on completion. And I'm naive hence why I started this thread but it seems people in the same shoes have getting mortgages i.e with Santander and not used a broker.

Why not speak to more than one broker? Shortlist several and speak to all of them to get a feel for which one you could work with. Dismiss brokers who charge upfront, before an approved mortgage offer.

Am I right in thinking we need 2-3k for fee's? We will have no stamp duty because of value of the potential property.

At a high level, you need to budget for:
- Conveyancing / legal costs
- Mortgage arrangement fee (which could be added to the loan, thus accruing interest unless paid off in the first mortgage payment)
- Valuation report (if the lender doesn't provide it as "free")
- Homebuyer's or Building survey (optional)
- Removals / man with a van / vehicle hire if DIY
- Broker fee (if you use one who charges a fee)

cherry_three

Many many thanks...cleared quite abit up. I will look at broker's as we are relocating 200 mile away it will be more than likely be needed to be done over email etc. We really got excited for abit when he git AIP but reading into this it means nothing. Which to makes me question why the do AIP in first place? If they are that misleading! Thanks

amnblog

Moving 200 miles? What is happening reference your jobs?

kingstreet

cherry_three wrote: »

Many many thanks...cleared quite abit up. I will look at broker's as we are relocating 200 mile away it will be more than likely be needed to be done over email etc. We really got excited for abit when he git AIP but reading into this it means nothing. Which to makes me question why the do AIP in first place? If they are that misleading! Thanks

I've recently got agreements in principle from Halifax.

I've submitted full applications based on those agreements in principle and they have been accepted.

A few days later, we've been told the applications are being declined due to adverse credit.

We've been unable to see this on the credit files provided by the client.

It later turned out, the client had been economic with the addresses provided to the CRA to get the ostensibly clean credit file.