New build DIP

overthinkingmind

Hi
We went to view a new build that we want to buy. We had already obtained an AIP from Halifax for a 90% LTV however we had to use the builders recommended mortgage broker to see if we were suitable buyers. He took all our details and phoned back to confirm we passed the credit scoring for 90% LTV and should we want to proceed we can pay the reservation fee and get the ball rolling

I asked him if there's anything that could go wrong from this point and he said that as he put our credit card debt into the system and we passed the credit scoring then it should be pretty plain sailing from here.

I feel like this is too good to be true and a bit premature? I'm planning to pay the reservation on Tuesday and the builder suggested a move in date of 7/10 (as we are due to get married in September) but I can't bare he thought of not knowing if we've got the house or not until then

I have 1 default on my account which is 6 years old 15/09 and am paying small contributions to old debt (no longer on my credit file) from a secondary bank account. Could they ask for all bank account statements during application and reject us because of these payments?

lee111s

Whichever mortgage lender you apply to will probably ask for payslips and bank statements as a minimum.

If you already had an AIP in place you didn't need to use their mortgage advisor at all.

You won't need to wait until October to find out if you have the house. Builders usually want you want exchange contracts within 6 weeks of paying the reservation fee.

overthinkingmind

Thanks for your reply. So would that be all bank accounts or just current? If so would the payments to old debt cause a problem? They are small amounts but have been the same for years and are always paid. If I use a broker do I deal with the broker instead of the bank?

Thrugelmir

Clear the debt ASAP. Then it's dealt with. The mortgage application you will sign includes a declaration to the effect that all facts have been declared. Failure to declare and then subsequently being found out isn't worth the downside. As the lenders attitude will be if you are prepared to lie about that what else is false or missing.

Lenders compare notes via National Hunter. Take a look. Taken very seriously.

http://www.nhunter.co.uk/

overthinkingmind

Even if it's not on my credit file? I'm not going to be able to clear it without using the mortgage deposit, which in turn would leave us short for deposit so inbetween a rock and a hard place. It's taken so long to get to this stage with clearing off other debts and over drafts. Just feels like we're so close. Think I'll just need to declare it as debt and hope that we still pass on affordability