AIP- will mortgage be approved

ameliaroseob

Hi,
Myself and my partner are currently trying to purchase our fist home using the help to buy scheme. We are hoping to buy a new build by Bellway and are using the New Homes Group broker.

We have just been given a mortgage in principle and now hope to apply for the mortgage in around three weeks. We were unsure if we would be approved as my partner does not have a perfect credit score as he missed two payments on a credit card 4 years ago. The mortgage broker has suggested we are now very likely to get the mortgage approved now however I am still unsure. Would missed payments show up on a soft check credit search? We really have our hearts set on purchasing the property now but do not want to have unrealistic expectations. Any more information on the likelihood of being approved would be very helpful. The AIP was given through Halifax if this is of any significance?

Many thanks in advance.

muhandis

Assuming that the broker knew of your missed payments when placing you with Halifax, I don't see any obvious reason why the application might not go through, provided the information provided for the AIP can be substantiated when making a full application.

ameliaroseob wrote: »

Hi,
Myself and my partner are currently trying to purchase our fist home using the help to buy scheme. We are hoping to buy a new build by Bellway and are using the New Homes Group broker.

We have just been given a mortgage in principle and now hope to apply for the mortgage in around three weeks. We were unsure if we would be approved as my partner does not have a perfect credit score as he missed two payments on a credit card 4 years ago. The mortgage broker has suggested we are now very likely to get the mortgage approved now however I am still unsure. Would missed payments show up on a soft check credit search? We really have our hearts set on purchasing the property now but do not want to have unrealistic expectations. Any more information on the likelihood of being approved would be very helpful. The AIP was given through Halifax if this is of any significance?

Many thanks in advance.

ameliaroseob

Yes the broker was aware and didn't seemed concerned but this seeemd quite unusual to me. I know Experian and equifax can't be taken as certain, but his credit rating is poor according to these. It's all very confusing. We have now paid money to a solicitor and will shortly have to pay the broker before our application is processed. As a sceptic I feel as though the broker might just be after our money rather than helping us get the best mortgage available.

muhandis

The major portion of a broker's income is from the procurement fee (around 0.3% or so of the mortgage amount) paid by the lender upon completion of the mortgage. So personally I think it unlikely that he'd place you with a lender he wasn't sure of.

Have you paid any fees to the broker and if so how much?

ameliaroseob wrote: »

As a sceptic I feel as though the broker might just be after our money rather than helping us get the best mortgage available.

ameliaroseob

We haven't paid any fees yet but I believe it is £500 before the actual application goes through. So we stand to lose that, plus solicitor fees, plus reservation fee if we can not get mortgage in place.

amnblog

It is rare though not impossible for a case such as this to fail on credit score on full application if lending levels are unaltered.

kingstreet

When a full application is submitted, it will usually be accepted but may be referred to a business assessor due to the adverse if it's visible on Experian.

Until the BA has accepted it, the valuation won't be instructed.

As you are applying at 75% LTV max, possibly less with a bigger deposit, the scoring is less stringent and a couple of lates four years ago is a lot more acceptable than some of the stuff we've got through with Halifax in the last few months on HTB Equity Loan.

Magic eight ball says you'll be fine...

ap1985

ameliaroseob wrote: »

Hi,
Myself and my partner are currently trying to purchase our fist home using the help to buy scheme. We are hoping to buy a new build by Bellway and are using the New Homes Group broker.

We have just been given a mortgage in principle and now hope to apply for the mortgage in around three weeks. We were unsure if we would be approved as my partner does not have a perfect credit score as he missed two payments on a credit card 4 years ago. The mortgage broker has suggested we are now very likely to get the mortgage approved now however I am still unsure. Would missed payments show up on a soft check credit search? We really have our hearts set on purchasing the property now but do not want to have unrealistic expectations. Any more information on the likelihood of being approved would be very helpful. The AIP was given through Halifax if this is of any significance?

Many thanks in advance.

Try stay positive. I just managed to secure a mortgage with a poor credit file. I was just like you worrying but as the late payments are old I wouldn't worry about it too much.

lyates

We are in a similar situation. Awaiting a decision on a new build from Halifax. With the equity scheme and our deposit our LTV stands at 69%. I think the only thing that may let us down is that we have very little credit history.

It is so nerve wracking.