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Mortgage Applications & Probationary Periods
tain
Posts: 716 Forumite
My wife and I are looking to apply for our first mortgage soon, but we've both just started new employment. I have a few Qs relating to this:
To clarify the DIP thing - I had bad credit/defaults 5-6 years ago (zero since), and a few remain on my credit file. So we'd need a DIP before even looking, as we need to know how much the bank is willing to lend us with them last few defaults on my file.
- If our probationary periods will end before any agreement is signed, exchanged, etc. can we get a decision in principle from the bank as though we were never in probation? (i.e. is it worth waiting until after our probation to apply for a DIP?)
- Would being in probationary periods negatively effect how much the bank is willing to lend us, if our probation ends before an agreement?
- Are there any benefits to waiting longer, after the probationary periods have ended, if the bank is likely to lend us more?
To clarify the DIP thing - I had bad credit/defaults 5-6 years ago (zero since), and a few remain on my credit file. So we'd need a DIP before even looking, as we need to know how much the bank is willing to lend us with them last few defaults on my file.
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Comments
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Being in probationary period is not a problem for some lenders, however if you wait you will have more options.
The defaults combined with probationary period could be a problem. I think I would be inclined to wait until you have passed your probationary period and get all 3 credit reports infront of an experienced broker. Some lenders are more relaxed about defaults than others so it is important you are going to the lenders most likely to accept you.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Being in probationary period is not a problem for some lenders, however if you wait you will have more options.
The defaults combined with probationary period could be a problem. I think I would be inclined to wait until you have passed your probationary period and get all 3 credit reports infront of an experienced broker. Some lenders are more relaxed about defaults than others so it is important you are going to the lenders most likely to accept you.
Thanks for the advice - we're eager, but certainly don't want to jeopardise the application just for a few months.0 -
Employment gaps can also be a problem.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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