Mortgage App tmw

The_Humph

I haven't had a mortgage in over 23 years. About to go through application tmw..nervous, scared, excited all in one go!

Bit confused though, my advisor said she had done the DIP and with my card debt Halifax have said 85ltv. Now she says at the meeting we need to undertake the Dip and proceed from there...I said I thought we already had this, and she said it was only a soft search, now a more in depth search for dip???!

Oh we'll see what tmw brings.

Malmo

A bit confused by that. A Halifax DIP would certainly leave a soft search on your credit history and a full application would then result in a hard search, but I imagine you haven't had an offer accepted on a property yet? Perhaps the advisor is using the Halifax soft search as a method to gauge your credit history and affordability before looking at different lenders? That would be an odd approach and would be a red flag for me.

ACG

Some brokers do DIPs with Halifax rather than going through the credit report themselves. This should not really be done and is being fased out.

No harm done, but its not great practice.

Malmo

I dismissed a broker from my shortlist for this very reason, when she mentioned what she'd do at the initial meeting. The approach didn't instill any confidence in the broker at all.

amnblog

A lazy approach, and pointless given that a pass from Halifax dip does not mean a borrower will pass at full application as witnessed on this forum every week.

csgohan4

Unfortunately some EA's demand a DIP before accepting offers

Malmo

csgohan4 wrote: »

Unfortunately some EA's demand a DIP before accepting offers

This is perfectly normal but the broker should still do the research and recommend the right lender for the client and obtain the AIP / DIP from the recommended lender.

The_Humph

Sorry I didn't explain very well..this is a special case, in that the property is a new build under section 106 low cost housing criteria and therefore only 4 lenders who will touch as it is relatively new.
Today, the DIP was processed, and tomorrow a full application will be submitted. Fingers crossed.

csgohan4

Malmo wrote: »

This is perfectly normal but the broker should still do the research and recommend the right lender for the client and obtain the AIP / DIP from the recommended lender.

However when the EA asked me for mine, I just gave them my broker details and to contact them to confirm affordability. DIP are not worth their worth on paper. You may not get accepted with that bank or product in the end.