Precise Mortgages DIP

elchapo

Hi All,

My wife and I have found the perfect family home and have received a decision in principle with Precise. I had to use Precise as I have some rocky credit history. Here are the main facts:

My Salary: £75k
Wife's Salary: £30k (currently on maternity leave)
Credit Cards/Loans: 0 - we have no debt
Property Value: £465k
Deposit: 5% ours and 20% HTB totalling 25%
Wife's Experian Score: 995 (Excellent)
My Experian Score: 726 (Fair)
I have 2 defaults on my file. One for £78 in 2014 and another for £495 in 2014 also. Settled in 2015 and 2016 respectively.
Lastly, I have some late payments 19 months ago.

The broker got an agreement in principle from Precise and the full application will be going in within the next 2 days. As you can imagine, I am nervous, hoping that it all goes through fine. We gave all correct information for the AIP.

As they did the AIP already, do you think it is unlikely to be declined under normal circumstances?

Thanks in advance

YHM

Unsecured missed payments?

Think you could have ended up with a better lender than Precise if I'm honest.

Unlikely, yes. But Precise can be a nightmare to deal with.

ACG

Are you sure you need Precise?
Has your broker gone straight to precise or tried elsewhere first?

Precise I think do a DIP with one credit agency and the application with another agency, but their criteria is black and white so you should be fairly confident that you will get a Mortgage. Precise are bit of a PITA lender, their underwriters are a bit pedantic at times but normally get there.

Edit: YHM beat me to it, but it seems our train of thoughts are along the same lines.

Thrugelmir

elchapo wrote: »

Wife's Salary: £30k (currently on maternity leave)

Rhetorically asked. When does your wife plan on returning to work? Presumably full time and not reduced hours.

elchapo

Thanks for the feedback/assurance.

I think the broker tried Skipton and Leeds but that was it. The two defaults seem to be the big blockers.

It's not the first that I have heard people say Precise are a pain to deal with and quite slow. Hopefully they won't be too slow as the house is built so the developer wants to move fast. I was surprised that Precise were my best bet. What other non-prime lenders are worth thinking about were this one to fall through for whatever reason? I work in IT where we are always trying to have a backup/failover for systems so having just one AIP from Precise and no fallback doesn't put me at ease.

elchapo

Thrugelmir, my wife will go back full time, returning July...

Thrugelmir

elchapo wrote: »

Thrugelmir, my wife will go back full time, returning July...

Only musing what the underwriters might ponder. As of course there's no obligation to return to full time employment. People being people etc. The question being what's their internal policy on the issue.

amnblog

Under 'normal circumstances' this case is not likely to be declined.

If 'hitches' occur from here are they are typically:

Something on the bank statement that the Lender does not like (which the Broker will have already checked). Classic's here are returned direct debit payments, exceeding overdraft limits, regular and excessive gambling transactions, undisclosed regular payments going out.

The property valuation coming in low.

elchapo

Thanks for the information.

My bank statements seem to be normal and as you say, the broker should have checked them thoroughly himself. No gambling, no debts/loans/cards, no regular monthly payments. I sold my car 2 weeks ago so £13k went in but all documentation is available to prove the sale.

I checked my credit file with Equifax also last night and it says there have been 19 months since my last late payments. I think this is why I had to go for Precise. The defaults are approaching 4 years old, are satisfied and are low value but lots of the lending criteria which I have seen say no late payments in the last 24 months.

I will let you know the outcome.

amnblog

Precise no longer refer to Equifax on residential mortgages. Experian only.

elchapo

Precise have come back asking for my tax Overview / SA302 for 2017 even though I have been with my employer for 6 months now on a £75k salary.

Having checked with my accountant, my tax overview shows about £16k of taxable income. Is this likely to be an issue or will they understand that this is just the salary/dividend that I chose to take from my own company?