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Likelihood of being accepted with Halifax?

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Hi all,

I appreciate this may have been asked a few times however I was hoping someone may have been in a similar situation to ours with a positive outcome!

We have just had our offer accepted on a property and have our AIP from Halifax for £193,500 which stated a 5% first time buyer mortgage, waiting for a call to book the full mortgage process.

I am a total worry wart and am paranoid we are going to be rejected for a mortgage.

My partner has a great credit history, however I had a default in 2013 for £1300 which was settled in 2015, I have been looking at my credit history which is in the poor category (which can only be for this reason) We are looking at a 93% LTV ratio, property is £145,000 and we are going to put down a £10,000 deposit. Anyone have any experience in the likelihood that we will be accepted? Other than the default we have a credit card with a balance of £5,000 but nothing else, no finance, overdrafts, car hire etc.

Thanks in advance

Comments

  • Usually for AIP they do a soft credit check and have a rough idea of your borrowing and credit score.

    It is impossible to say. Lenders vary and situations vary. My friend went overdrawn by £1 two years ago (not Halifax) and was rejected... my potential mortgage provider barely asked any questions but I do have an excellent credit score.

    You can't worry about what you don't know. You aren't borrowing to your limit so I imagine there would be other lenders you could speak to. Did you speak to a mortgage advisor or direct to bank? A good independent mortgage advisor normally wouldn't recommend a product they think you would be rejected for....
  • Thank you for your reply, it is such a stressful time!

    We spoke to a mortgage advisor a while back and they recommended Halifax, we just wanted to save more of a deposit before we went ahead
  • I can tell you now, it doesn't get less stressful :) haha (I'm due to exchange in next few days and it's been relatively straight forward yet utterly stressful!)

    if they offered £193 and you want to borrow quite a bit less than that, then even if they take into account your debt and your credit score, and reduce your borrowing from aip you should be ok. If you told your advisor about credit issues I'm sure he was confident in recommending Halifax for you with your circumstances in mind.

    Good luck HollieJade and try not to worry too much x
  • I had 6 defaults (now 5). Halifax accepted me made the process easy and stress free.

    Ignore the "credit score" it's made up by the credit reference agencies. Halifax, as with most lenders have their own credit scoring system.
    2.88 kWp System, SE Facing, 30 Degree Pitch, 12 x 240W Conergy Panels, Samil Solar River Inverter, Havant, Hampshire. Installed July 2012, acquired by me on purchase of house in August 2017
  • chelseablue
    chelseablue Posts: 3,303 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    My partner had 1 default and we were accepted by Halifax
  • Thank you all, you have made me feel much more confident..I will try to stress less. Sening my partner round the bend!
  • juniordoc
    juniordoc Posts: 366 Forumite
    A 7% deposit is not very robust considering stagnating house prices, you could be looking at negative equity and being stuck in thathouse for years and years.
    If you could save a little longer and reach a 10% deposit you would be much more attractive to mortgage lenders and it would all be much less risky. You'd get a much better mortgage rate too!
  • Hi Hollie

    I am in quite a similar situation to you (particularly about being a worry wart!!) I have got a AIP with Halifax, I have good credit history but my partner has a 2 year old settled default and 6 months of arrears from back in 2016. We are doing 95% LTV with the HTB scheme. I am convinced we wont be accepted but my MB seems confident so I have to put my trust in him!! Will be interested to see how you get on! :) good luck!!
  • Hi all,

    Just an update for anyone wanting to know how we got on, we decided to go for a 10% deposit as the rate was much better and we were able to do this. We had our mortgage appointment and were told even though I had a default that we had an A2 credit rating and that we had passed all the checks and our mortgage as long as the valuation matches is successful. Didn't need to see any bank statements (I bank with Halifax but my partner doesn't) just 3 months wage slips. To be honest the process was very easy and not nearly as stressful as I imagined.

    Good luck to everyone else.
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