Agreement in principle referred, how likely to be approved?

Cheyx

Hey,

Myself and my partner are looking at buying our first property, it's through a shared ownership scheme where we own 75% of the property and a company owns the other 25%. You have to go through a broker and there are only certain companies available to lend on the scheme. Our application has gone through to nationwide. We are putting down a 30,000 deposit. So would need a mortgage of 120,000. Between us we earn around £38000 with my partner just getting a promotion so his wage shall be going up in the next two months. Neither of us have overdrafts and he has a credit card but it is paid off in full at the end of every month. His credit score is 875 and no problems. Mine on the other hand is very low being 468 due to a default of a credit card where I was going through a rough patch when I was younger. How likely do you think our application is to be approved?

Thanks

Thrugelmir

The default has most likely caused the referral. Age of default, amount, if settled, when settled etc are come into play when making the decision.

AnotherJoe

I think you are 78.2% likely to be approved

amnblog

Referral is not a straight decline so that is a postive.

The broker is best placed to answer your question.

WorriedFTB_2

We are now in the process of getting a SOM ,
This is our third time in the last few years . All of them were accepted in principle but when it went to the nitty gritty they decline us .
Our income is £60K . Afforfibility is excellent and our score are 999 & 965 .
Both times prior to this one which I am currently processing were declined due to an arranged overdraft payment which I paid 3 years ago ( I had no idea that it would reflect on my score paying it )
Both refusals I asked feedback , they said that SOMortgage are more strict these days...
This time ( it has been a month today since we put an offer ) I used £148 of my arranged overdraft in November so our offer is pending until the 29Th lf Feb ... they requested to see how I do this month wihout using myoverdraft ...
I hope my experience can be used but all I can say is that they are strict with Shared Own Mortgages .
Hope all goes well X
Good Luck :money:

Thrugelmir

WorriedFTB wrote: »

Afforfibility is excellent and our score are 999 & 965 .

Yet you are using your overdraft. Which makes the statements contradictory. A mortgage last 25 years. If you are struggling month to month then you are unlikely to make the full term.

WorriedFTB_2

I used £148 of the arranged overdraft for 3 days for the first time in 2 years .... I totally understand isn't what they want to see but this happened just before Christmas and we were not planning to start again for a while I didn't realise 3 days would have such a detrimental effect ...��

Cheyx

My default was in 2014 and in total was £694, it has completely been settled in July 2015.

csgohan4

WorriedFTB wrote: »

I used £148 of the arranged overdraft for 3 days for the first time in 2 years .... I totally understand isn't what they want to see but this happened just before Christmas and we were not planning to start again for a while I didn't realise 3 days would have such a detrimental effect ...��

If you used your overdraft when you don't have a house, are you sure your ready for all the costs associated with buying a house and maintaining it???

WorriedFTB_2

I pay £1300 rent at the moment
The mortgage will be around £559 the part rented £359 so We will be paying £400 less .

TopperHarris

csgohan4 wrote: »

If you used your overdraft when you don't have a house, are you sure your ready for all the costs associated with buying a house and maintaining it???

I just love the way people think they know everyone else' situation! Using an overdraft for 3 days doesn't mean the poster cant afford a months rent or mortgage. What is the purpose of an overdraft???? To provide a buffer when needed?