DIP with Halifax but adverse credit

H0p3

Hi There,

I've posted about our finances before when we were beginning to think about a mortgage, but we're a bit further down the road now and I'm still anxious so looking for some advice so I can prepare myself!

In short I have adverse credit having been on a DMP from June 2014 - Nov 2016. The DMP was settled in Nov 16 and all my debts have now been paid .

I incurred 2 defaults at the time one on a store card balance of £248 and one on a current account overdraft of £418. The current account default was paid off the following month (occurred in May 15 and satisfied in June 15). I didn't even know about that one until last year as I don't believe I ever received notification of it.

I have since had no credit and built up savings with my husband of approx 15K. In January I took out an Aqua credit building credit card. I had an initial limit of £300 and this has been increased to £1200 last month. I only use the card for things for my daughter on my day off. I've paid the balance off every month and as my balance has been increased I can only assume they think I am managing it well! I still don't expect to spend more than 150 - 200 a month on it as that is what the things I use it for cost.

We went to our mortgage advisor in April to find out about getting a joint mortgage. My husband currently has the mortgage in his name at our current property and we have been overpaying this by £300 for the last 6 months. We were totally honest and upfront with the mortgage advisor and explained my history. We provided him with a copy of my credit report obtained through MSE Credit Club and made it clear I had adverse credit. We subsequently received a DIP from Halifax for £281K.

We have accepted an offer on our flat and are waiting to hear back from an agent regarding an offer on a house we have made.

My question is this - how likely is our DIP to be turned into a full mortgage? And are they likely to lend us the full amount? We have (possibly foolishly) made an offer that would mean we need that full amount to complete. However I have read awful things about Halifax dating back to 2014/2015. I can't find anything current on them and I'm terrified when we get to the full app stage they will decline us and we will lose our buyer and our dream home.

Our buyer is a cash buyer if that makes any difference and our deposit would be 24.5%.

Can anyone give me any indication of what our chances are? I realise it's all hypothetical, so there are no guarantees, but I'm not sure I fully trust our mortgage advisor who seems to just thing everything will be fine.

Thanks for reading and apologies for the essay!

Noobie2011

H0p3 wrote: »

Hi There,

I've posted about our finances before when we were beginning to think about a mortgage, but we're a bit further down the road now and I'm still anxious so looking for some advice so I can prepare myself!

In short I have adverse credit having been on a DMP from June 2014 - Nov 2016. The DMP was settled in Nov 16 and all my debts have now been paid .

I incurred 2 defaults at the time one on a store card balance of £248 and one on a current account overdraft of £418. The current account default was paid off the following month (occurred in May 15 and satisfied in June 15). I didn't even know about that one until last year as I don't believe I ever received notification of it.

I have since had no credit and built up savings with my husband of approx 15K. In January I took out an Aqua credit building credit card. I had an initial limit of £300 and this has been increased to £1200 last month. I only use the card for things for my daughter on my day off. I've paid the balance off every month and as my balance has been increased I can only assume they think I am managing it well! I still don't expect to spend more than 150 - 200 a month on it as that is what the things I use it for cost.

We went to our mortgage advisor in April to find out about getting a joint mortgage. My husband currently has the mortgage in his name at our current property and we have been overpaying this by £300 for the last 6 months. We were totally honest and upfront with the mortgage advisor and explained my history. We provided him with a copy of my credit report obtained through MSE Credit Club and made it clear I had adverse credit. We subsequently received a DIP from Halifax for £281K.

We have accepted an offer on our flat and are waiting to hear back from an agent regarding an offer on a house we have made.

My question is this - how likely is our DIP to be turned into a full mortgage? And are they likely to lend us the full amount? We have (possibly foolishly) made an offer that would mean we need that full amount to complete. However I have read awful things about Halifax dating back to 2014/2015. I can't find anything current on them and I'm terrified when we get to the full app stage they will decline us and we will lose our buyer and our dream home.

Our buyer is a cash buyer if that makes any difference and our deposit would be 24.5%.

Can anyone give me any indication of what our chances are? I realise it's all hypothetical, so there are no guarantees, but I'm not sure I fully trust our mortgage advisor who seems to just thing everything will be fine.

Thanks for reading and apologies for the essay!

From the extensive research I have done on here due to is having quite alot of debt and our broker messing us around my view is a DIP is very basic and really will only give you an indication of what you could borrow but this figure may change dopending on your corcumstances in regards to your credit history and how it affects Halifaxs scoring which is very different to the made up scores on the credit reports.

I will say Halifax are one of the more lenient lenders however our issue was we only had a couple of missed payments and I was ina new job which in the end they were not fussed about. What was an issue was the amount of debt we had and the utilisation of it but we used equity from our house sale to clear it all which has got us tk where we are now having just received a Mortgage Offer. But from what the Mortgage Advisor was saying as we went direct after dumping our broker was our affordability was fine so probably did not need to clear all debt.

What I woukd do is google Halifax Lending Criteria and have a good look down it and especially in the section for Credit issues to see what their criteria is as this can give a good view. However if you have a broker and they are good then all this shoukd be covered for you.