Agreement in Principle Concerns

IvyFlood

Hello

We are applying to get a Decision in Principle with Nationwide on Saturday and I am really concerned it could get rejected due to my partner being employed for less than a month.

Bit of background to us first, we already applied back in January when at the time he had been in his current job for just over a year, and I had been in mine three months. We got accepted and offered a mortgage on the house we were buying but then in March he lost his job, so we had to cancel our mortgage as we could no longer afford it based on just my wage.

Back to the present and he stated a new job on 21st May that is 2.5K less per annum than his old salary. We currently rent and our contract expires at the end of June. After this we were just going to continue with a periodic tenancy while we look for a house but we have recently been informed by our landlady that she is going to put the house on the market which I guess she is entitled to so we feel a bit under pressure. And we have also found a house that we are hoping to put an offer in on.

My partner has had a payslip up to the end of May but it is only partial and he won’t get his first full payslip till the end of June. When I spoke to the mortgage advisor (the same one that saw us the first time) he said that shouldn’t matter as long as he has a letter/contract confirming salary and that the employment is permanent (which he has) then the first payslip will do just to verify the employment.

We have a 15% deposit, no debt and our credit scores are good. My only concern is that the ‘system’ won’t like him being employed less than a month and reject us in which case we would have to freeze and possibly look at renting somewhere else which we’d rather not do.

And also could our cancelled mortgage offer have a negative impact even though we requested to cancel it?

Can anyone advise if I’m just being paranoid?!

Thanks in advance

amnblog

The change in employment can change the scoring but this scenario still falls within Nationwide criteria.

You will be providing a copy of the offer of employment.

Medihv

I’m not a mortgage adviser, so have nothing to offer on that front.

But I know that people start new jobs all the time. This often entails moving to a new location and buying a new house.

As amnblog said, if you have an employment offer or a work contract, I'm sure that will help.

I would like to think that the mortgage would be based on affordability as I imagine that people often apply for mortgages whilst taking new employment.

Also, I didn't think that an AIP is a pass or fail scoring system? Do they not take your financial circumstances and give you an amount in principle that they are willing to offer?

Let us know how it goes?

IvyFlood

Medihv wrote: »

I would like to think that the mortgage would be based on affordability as I imagine that people often apply for mortgages whilst taking new employment.

Also, I didn't think that an AIP is a pass or fail scoring system? Do they not take your financial circumstances and give you an amount in principle that they are willing to offer?

Let us know how it goes?

I would like to think its based on affordability too, which we are good for, and hopefully our deposit will speak for itself. I have done the detailed affordability check/calculator on their website and it came out decent.


Just I know that lenders always have a certain 'criteria' they like to follow and the fact that he's been in employment less than a month might flag up and throw the whole thing out.

IvyFlood

Medihv wrote: »

Let us know how it goes?

We were Accepted! All my worrying for nothing. As we have already found a house and had an offer accepted, the advisor wanted to proceed straight through to the application but he couldn't get anyone to cover his appointments that day. The earliest appointment we could get was 30th June! Hopefully that goes ok.

kingstreet

Appointment on 30 June?

A decent broker would have your mortgage offer in your hand before then...

IvyFlood

kingstreet wrote: »

Appointment on 30 June?

A decent broker would have your mortgage offer in your hand before then...

I know its a bit frustrating! Its with Nationwide and we can only do an appointment on the weekend - that's the earliest they had.

kingstreet

You might have lost the property by then.

It's going to be over a month from accepted offer to valuation.

IvyFlood

kingstreet wrote: »

You might have lost the property by then.

It's going to be over a month from accepted offer to valuation.

Why would we have lost it? Its been taken off the market?

GMS

IvyFlood wrote: »

Why would we have lost it? Its been taken off the market?

Estate agents will be expecting a valuation appointment. Leaving a gap like this between offer and mortgage application may well see the property put back on the market.

Have you appointed a solicitor yet?

IvyFlood

GMS wrote: »

Estate agents will be expecting a valuation appointment. Leaving a gap like this between offer and mortgage application may well see the property put back on the market.

Have you appointed a solicitor yet?

Yes we have a solicitor.