Doubting AIP

hopefulsoph

Hi There

I am new to this so go easy on me! I have been reading lots of the posts on this forum recently and have found it really helpful reading what people advise and their experiences so thought I would ask my own question rather than apply other peoples to my own situation! Don't want to keep hassling broker...

Here goes...Have recently been granted a DIP from Halifax for 207000 based on 10% Deposit ish via a broker who was great, just wondered how well I can count on this at full application stage given our circumstances re: affordability and credit check. I was fully expecting this to be a no go until end of the year give adverse below!

2 applicants income £55900 (joint) both perm employed
His credit file: perfect
Mine: 1 default £1600 registered Oct 2011, fully settled 2014, three separate late payments (number 1's on CF) over past two years- latest of these around 10/11 months ago, so almost a year old.

Deposit £25000 (equity from sale of current property)

combined debt:

Car HP - £200 p/m
CC - £3000
CC - £320 - to be repaid prior to completion
mail order - £3400 - to be repaid prior to completion
mail order - £3200

Any thoughts would be welcome, don't want to start the 'moving house ball rolling' if we're likely to fail at the first hurdle! Also if Halifax were to decline at full app stage would it be likely I'd find another lender?

thanks in advance!!

teffers

I had a DIP from Halifax back in 2015. I'd fully disclosed my 1x (satisfied) default from 2011 to my independent broker and he chose Halifax.

This then dis-integrated before my eyes when I made an offer and tried to apply for the mortgage and Halifax carried out a full credit search.

hopefulsoph

Did you manage to get a mortgage elsewhere? What happened?

ACG

The Halifax DIP is not worth the paper it is printed on. That being said, I suspect there are normal lenders potentially open to you and failing that there will be a couple of non high street lenders with rates of around 4.5-5% as a back up.

kingstreet

There is no way to answer this.

It might pass a full application, or it might not. There is nothing in the Halifax criteria which says a definite yes, or a definite no. It's 'computer says' on the day...

ellison007

Hi ACG,


Why do you say the Halifax Mortgage Promise DIP is not worth the paper it is written on?


Why do banks offer such a facility if they're useless?


Many thanks,

kingstreet

It's a soft search and it covers only current address and for the last three years only.

When the full search is done at full application more is picked up which can cause a decline.

hopefulsoph

Thanks for responses, I really appeciate it it's hard to know what's for the best, if Halifax decline how would this be percieved if going to another lender? you hear about having multiple searches having adverse effect?!

ACG

Has your broker said they are going to apply to Halifax or have they just done a DIP with halifax because its easy to do?

hopefulsoph

No they haven't said they will apply, they said they just wanted to do a DIP to see if we passed this check, when I called we did not have a property in mind as I was fully prepared to wait until later in yeat when default drops off file, and paid off more of our borrowing but...If we were in a position to buy now there is a property we know of about to come onto the market we would love, so would want to get ours on market to be ready. Broker just sent out the DIP and a load of info about conveyancing packages, and suggested we call when ready!

ACG

Dont worry for now then. Just trust your broker, but I think yoou have a few options.