Mortgage Application - Adverse case?

DRMANTISTOBOGGAN

Hi all,


Looking for some advice on whether or not our application would be considered an adverse credit application.
Partner and I are looking to use HTB equity loan scheme to purchase a house for 225k so the lenders we are looking at are high street lenders. The developer we're using has a preferred mortgage broker but it's a small local broker without speciality in adverse credit and I'm wondering if it's a waste of time.
Our situation is that I have a registered default for £80 from March 2014 for a store card (H&M) settled immediately. Partner has a perfect credit rating.
Our joint income is 55k before bonus, we have no dependants, 2k on a car loan being paid off 230 a month so ends in February next year and no other debt. We don't have any monthly commitments other than the usual mobile phone etc, we take home around 3.5k a month because of the low commitments so aren't worried about affordability.


Got an AIP from Halifax for 100k more than we'd be looking to but I'm concerned that's only because there weren't any questions about adverse credit on the application?


Has anyone been through anything similar?

amnblog

An AIP from Halifax is likely to be useable in your case and worth following through.

David_White

The default needs to be declared to Halifax during the application.

DRMANTISTOBOGGAN

Thanks for the replies. There wasn't anywhere on the application for the AIP to declare anything credit related, so on full application I guess you mean? I will of course be declaring it but my concern is that if I go through the developers broker they won't frame it in the right context.


I guess what my question should have been was; is the default serious enough to our chances of getting a mortgage that a broker without adverse credit speciality will be able to handle or should I go straight to adverse credit broker?

David_White

I've never seen the consumer version of their system however when I process an AIP with Halifax as a Broker there is the following question before submitting:

"Has any applicant had a County Court Judgment (CCJ) or default registered against them or if self-employed against their business within the last 6 years?"

If you have said no to that question and the default is flagged by an underwriter your case may be declined due to non-disclosure.

DRMANTISTOBOGGAN

It wasn't, which is what I was worried about. I also can't see any searches on my file from Halifax which is further cause for concern.
It seems that an AIP you can get through this consumer version doesn't actually amount to much then as credit worthiness forms such a large part of an application?

DRMANTISTOBOGGAN

In fact I may have got the wrong end of the stick, what I have actually says 'Online mortgage promise'.
Is this not in fact an AIP?
It has details of amount they'd be willing to lend over what term and at what rate also.