Offer In Principle Query

Dominic1102

Good Evening,

Me and my partner have been to see a mortgage advisor. I have a satisfied ccj on my credit file, it was satisfied in 2014. They contacted the relevant banks and were told by nationwide they would be willing to offer a mortgage after 5 years had passed from the satisfaction date. Does this sound reasonable?
We are also currently renting our property, we have the money for a deposit on a property. We both bank with nationwide, would we be wasting our times to try and get an offer in principle? What would the impact be to our credit files should this be refused? Also is refusal the right term to use?

Thanks

Dominic

Carrot007

Dominic1102 wrote: »

t was satisfied in 2014. They contacted the relevant banks and were told by nationwide they would be willing to offer a mortgage after 5 years had passed from the satisfaction date. Does this sound reasonable?

No, 2014 + 5 = 2019 which it is not to my knowledge.

Other that that as long as you went to a proper broker (preferably specialising in "bad debt" mortgages, then yes.

And yes in my experience you bank will be better placed to offer you such as long as you have never been in default to them.

GoingOn30

There's no point getting a decision in principle until you have looked at some properties and found one you want to make an offer on.
Use the banks online calculators to work out what you can afford, continue to save for a deposit and get some viewings booked.
You can then think about getting a DIP if you want to make an offer.

ACG

There are lenders where you fit criteria once it has been satisfied for 12 months, there are also lenders who will completely ignore them after 3 years from registration - satisfied or not.

Also I am sure Nationwide would only accept you for the new property if you have a 20% deposit for the new place from memory.

Dominic1102

Evening all,

Thanks for your replies.

Carrot007, regarding a bad debt mortgage advisor, would I be paying more money (interest) for the mortgage or would it be a higher deposit would be needed? Never been in default with the bank so I think they may be the best option.

GoingOn30, we have a deposit saved 10% minimum which could be added to if needed. So if we found a property we liked, went for the decision in principle and it got declined, what effect would that have on my credit file?

ACG, thanks for your information, we have only visited 1 mortgage advisor, would you recommend more? I was always under the impression no one would touch me for 6 years which it still showed on my account?

On a further note, me and my partner were due to move into a new rented property, at the beginning of May. This has now fallen through and we are moving in with her parents, time will tell if it!!!8217;s a good idea!! But we have a figure of £30k saved for a deposit, would we still be able for the help to buy isa? Would we be able to take one out each? We would save in that for a year which would take us to the 5 year ccj that th3 mortgage advisor mentioned.

Thanks

GoingOn30

You will be viewed as less risky to lend to if you van get up to a 15-20% deposit so aiming for that would help.
You can both open a help to buy ISA each but can only put in £1200 on opening and then max £200 a month. Still a good idea though.
Great news that you are moving in with parents so can reduce your outgoings in the run up to buying a house. Even more incentive to start viewing places to buy I would have thought though. I couple only cope with my in laws for a limited time only!