AIP from Halifax. Likely to get an approval?

Bennyg82

Without going into massive detail - Had some debts, sorted them out and everything paid off. Defaults over 4 years old and perfect credit for 2 years. Score increasing monthly but still not very high and I am doing everything I can to build.

I had a mortgage in principle from a broker on a 85% LTV but very high rate and I didn't quite have the deposit plus moving costs

I did a AIP on the Halifax website and it approved me for a mortgage (again 15% deposit needed) which I was surprised about. As this was so quick I assume it would need an under righter to check details (and I was completely honest). Can I assume that having received and AIP I will likely be accepted from a mortgage or is there still a chance of getting decline when I go to application?

Desperate to move as want kids to have their own rooms but I've not applied for credit in the last 2 years on anything and the AIP was only a soft search. How likely am I to get accepted. Has anyone got this far and been declined?

Thanks in advance.

Ben

MortgageMamma

Nobody can tell you how likely it is you will be accepted other than Halifax - an AIP is not a guarantee as you know, it will all be subject to underwriting, bank statements, affordability etc. the AIP just means you have passed the provisional checks.

You say you have a mortgage in principle from a broker but you don't quite have the deposit plus moving costs but the Halifax one is the same amount of deposit?

Bennyg82

Thanks for your reply,

I had a a higher rate offer for a slightly lower amount about a last January (Bluberry Mortgages) and sent my credit reports (mine plus wife's) to a friend that is a broker who said his company would likely offer a similar amount again at a high rate and 15% deposit. I thought it would be longer before I could apply for a high street mortgage.

I understand no one can say for sure I was just suspicious of these AIPs being very soft and then lots of people getting rejected further down the line. I have been extremely careful about applying for anything. My equity is going up and I've been spending and paying off in full about £500 on a credit card every month for last 18 months.

I'm probably still a little light on deposit for house type/location I want but I like having something to aim for and I'm just cautious about getting over excited about moving. My 2 kids share a room and I'd love for them to have a room each and reduce my hour drive to the office.

I am hoping that the lack of responses from people getting an AIP then subsequently getting rejected is a good sign.

Thanks

Ben

amnblog

Have you now got 15% deposit and costs?

kingstreet

Recently, we've had more DIP declines from Halifax than normal, but we aren't getting DIP accepts and full app declines.

We haven't had one of those for well over 12 months, off the top of my head.

Bennyg82

Thanks both. I've had another scourer of the market and my wife and I have decided we are going to wait a little longer to build a bigger deposit. Halifax AIP was for a house in the region of £260,000 but my deposit plus moving costs probably only allows me £210K. In that time our credit worthiness will only improve. In the area where we want to move to, £260K is more realistic for the sort of house we'd like.

Can I assume that as oppose to saving cash, mortgage over payments would look better when it comes to application? Showing I can afford the additional outlay comfortably and registered on my credit file?

Bennyg82

I do find credit frustrating (although yes it is resultant from my actions). I've not had a single credit search on my account for over 2 years other than soft ones as I have actively not applied, I've had perfect payment history for over 2 years, all my defaults are older than 4 years, I've closed all inactive accounts. I pay off one credit card in full every single month, I make over-payments on my mortgage most months. I have been also saving a little. I have 2 current accounts and a mortgage with HSBC - never missed a payment and keep both accounts in good working order.

Today I decided after the end of an introductory enhanced savings rate at Tesco, I would open a HSBC Loyalty ISA linked to my Advance Current Account.

I was rejected based on credit searches. Go figure!

Bennyg82

Just to update - My father in law gifted us some money and with my AIP and £30k equity I went for a meeting at Halifax.

Pleasantly surprised that I was offered at 10% LTV mortgage and it has all gone through without issue and without needing the gift, with equity covering costs. We paid a fee to get a better rate. As interest rates are not that great we are planning to move in and spend the money on improving he properties value (rather than soft furnishings and expensive TVs).

Exciting times