DIP/Mortgages

Elson_Cj

My partner and I are currently going through the tedious process of finding our first home.

We have our hearts set on a house we’ve found and have done the necessary to reserve (shared ownership).

Between us we have a joint income of £53,000 a year. We are working closely with a broker, who given our circumstances, have found Leeds Building Society the most suitable lender.

We will require a mortgage of £103,000

....with that said, we had our DIP referred but it was accepted so we are going through the actual application. It went to the underwriter who made the initial decision. Is this seen as a good or bad thing? I’d ask the obvious on how this will effect our application but I suspect I’ll get some pretty generic answers.

My credit rating isn’t great and have history of payday loans - whilst all credit is paid on time no matter what, this will be seen as a bad sign. I have no CCJ’s, defaults or anything else considered bad. ( I hope )! My partners credit score is good. I have been on the ER for 7 years plus....

I wanted to find out if anyone had a similar experience they could share and I’m worried I’ll be declined. Will the look at both financials and take it effect that my partner and I will be ‘sharing’ money and I use that term very loosely! What I mean is anything house related....

Any replies would be appreciated and sorry for the long read!

ConMan

If you've used a Mortgage broker, I assume they'd refer you to a lender who would accept your history.

Even if they reject you, keep your head up and move on to the next one.

MortgageMamma

Elson

Leeds are a good lender but my instinct tells me they may query the payday loans. A lot about payday loans depends how long ago it was and if it was fully repaid, and how many times you used the service. Lenders also look at stuff like how often you have been over your overdraft limit, if you make cash withdrawals off credit cards etc to get a picture of how you manage your finances. They do this to assure themselves the mortgage will be paid every month.

Have you given your broker a copy of your credit reports to work with? If so, he or she may have spoken to their business development manager at Leeds building society before submitting your application to gauge how the lender will view the payday loans.

If you do get declined by Leeds don't lose heart, there are plenty of fish in the sea including some that don't mind payday loans

Elson_Cj

Hi all,

Thanks for your feedback! I have never missed a payment for anything, everything is paid on time regardless. I’ve checked my credit report and there is a lot of positives on there.
In regards to payday lending, some were recent (within 6 months) which I know reading into it will be the issue on my application! My broker is aware of these and managed to obtain a DIP. They now have my bank statements so we are waiting on the inevitable. I won’t keep my hopes up because I know how it works but if by chance there by a miracle, I will let you know!

Gemmalauren

Hi, how did you get on?

Gemmalauren

Gemmalauren wrote: »

Hi, how did you get on?

Ignore that, I've just seen you posted that today 🙄

Elson_Cj

Application is now in after a DIP issues! They’ve just called to ask for our bank details for the direct debit, not sure if this has any relevance, probably just part of the process! Now just a waiting game...like I said, I haven’t got my hopes up but all I can do is prey for a miracle ay!

Elson_Cj

Update for those following. An underwriter has had an initial look and requested further documents. Our broker has provided these. We will continue to wait!

Not sure if it’s a good thing or bad?

Mcgough221

We went through the same. DIP referred, more and more info needed. Had to prove every credit commitment was repaid. It took 2 months to get an offer. (We did have to restart the application once and also had xmas in the middle).

I spent the whole 2 months stressing about it all but honestly our broker had it all in hand and nothing to worry about. Good luck

Elson_Cj

We received a letter today saying that the lender had carried out an initial assessment of our application and are liaising with our broker, to whom he is a business introducer. It says a mortgage offer will be sent to us as soon as it is available?

Is this a good sign?

Elson_Cj

Thank you for your recent mortgage application. I confirm that the Society has carried out an initial assessment of your application and we are currently liaising with your introducer {name of broker} to advise of any outstanding requirements, in order that a Mortgage Offer can be produced as soon as possible. The Mortgage Offer will be sent to you and to your introducer as soon as it is available."

This is what the letter read, can anyone shed some light on this? Anyone has any experiences?