Applying for a mortgage

arcon5

So I did some research early on in the year saying if you've previously been bankrupt to use a broker from the outset as a rejected mortgage application is extremely detrimental and they will know the best banks to apply to. Bearing in mind my bankruptcy was Jan 2013 and now off my file.


So I had a look at Natwest and it says under 'offer in principle' "Will not affect your credit score".


So can somebody offer clarity on this... If they are unable to make an OIP or it's lower than expected for expected will it affect us going forward seeking an offer from another institute?


(We are new, first time buyers so this is all new to us so any pointers, advice, experiences is appreciated)

amnblog

You are living in one end of the Country and wish to move to the other end.

You don't have your full deposit together.

You have a Bankruptcy on the file.

Why are you not using a Broker?

scholesfan88

Natwest do a soft credit search when getting an AIP, so no it wont affect you in any way, shape or form.

arcon5

amnblog wrote: »

You are living in one end of the Country and wish to move to the other end.

You don't have your full deposit together.

You have a Bankruptcy on the file.

Why are you not using a Broker?

Because we have as much knowledge about brokers and what to expect from them as we do mortgages. So it's pretty prudent imo to do some researxh and gain a bit of knowledge as a first step



But as a full time broker I suspect you have become a tad desensitised as to what it's like as a first time buyer

kingstreet

You may find keeping all our questions on your purchase within one thread helps you and others to see past answers and to gain a feel for how things are developing.

8ofspades

arcon5 wrote: »

Because we have as much knowledge about brokers and what to expect from them as we do mortgages. So it's pretty prudent imo to do some researxh and gain a bit of knowledge as a first step



But as a full time broker I suspect you have become a tad desensitised as to what it's like as a first time buyer

If it helps, when we were FTB we used a mortgage broker, they didn't answer questions thoroughly enough for us and a few other things, so we stopped using them. We didn't pay them anything (they didn't answer half the questions anyway).

We found a new mortgage broker who had several recommendations from friends. They were brilliant. Took us through our entire situation, told us what sort of price we could afford, we went off to house hunt, no money changed hands. They were always there to answer any questions we had. Including, when our situation changed dramatically (change of jobs, could afford less). Eventually we found somewhere (it took at least a year), went back to our mortgage broker and went from there. We only paid our broker fee when we applied for our mortgage.

Go and find a mortgage broker, ask your questions, get personalised advice. You won't regret it. If they don't answer your questions, if you're not happy with them, move on. They should explain to you on your first meeting what you're signing up for.

ACG

Kingstreet raises a good point, having various posts for various issues can mean the wrong answers.

As I mentioned on your other post about the deposit, there are vairous lenders who look at the deposit in different ways. Add in the bankruptcy and you may find your options reduced further. Add in another issue and you may find you have no options. It basically just means the answers we give will be more accurate.

In terms of natwest, they do a softprint at DIP/AIP stage for individuals. It is not an application. When the full application goes in, it will affect your credit score.

Also, doing your own research is all well and good but last month I had a case offered that did not fit criteria with natwest. I have had cases with Skipton and Coventry offered that do not fit criteria in the last 12 months and probably other lenders I can not recall. It is knowing who to ask and when to ask. You could have a broker doing it all for you and save your time. I would probably do what you are doing in your shoes, but being in my shoes, I know where boundaries can be pushed and I also know what lenders to knock of the list even if it does fit criteria.

Fitting criteria and being accepted are very very different.

arcon5

Ok
We are going to find a broker....
We don't really know what we need to know so don't really know what to ask beyond the basics... But I guess that's the reason you use a broker because they do know what we don't know we actually need to know.


I did use the Halifax AIP today and was accepted in principle.
Their advisor did state that as the bankruptcy was more than 6 years ago it is basically disregarded by them.


But I don't want to risk going to full application and being declined because of a reason a broker would have otherwise known.


We don't really know anybody down here that's bought houses and looking across the board, even those that are not local... Or is this a big no no? Or does anybody have any recommendations???

ACG

Discuss your case with the broker. Do you like/trust them? Do they sound like double glazing salesmen or do they sound like brokers who work in a regulated environment. Do they sound like they are asking the right questions (when did you enter/exit the bankruptcy) etc.

8ofspades

arcon5 wrote: »

Ok
We are going to find a broker....
We don't really know what we need to know so don't really know what to ask beyond the basics... But I guess that's the reason you use a broker because they do know what we don't know we actually need to know.


I did use the Halifax AIP today and was accepted in principle.
Their advisor did state that as the bankruptcy was more than 6 years ago it is basically disregarded by them.


But I don't want to risk going to full application and being declined because of a reason a broker would have otherwise known.


We don't really know anybody down here that's bought houses and looking across the board, even those that are not local... Or is this a big no no? Or does anybody have any recommendations???

Can you ask on a local FB group for broker recommendations? Don't worry about what you need to know, they'll take you through what they need to know and I'm sure you may have questions that pop up along the way (for example, your past bankruptcy)

Our buying situation was quite complex, I had little clue about mortgages at the time as it was, having all the complexities on top of that and trying to figure it out myself was stressful and daunting. Our broker really was worth every penny, very warm and reassuring, felt like we could ask her anything, any time (well, we did).

If you can't get any recommendations, I'd recommend just getting a list of local ones and calling for a quick chat, explain your situation about buying in another county, being an unsure FTB etc. If they're not warm to you on the phone, just don't make an appointment with them (say you'll need to double check with your partner or something if you're uncomfortable saying it outright). Hopefully you'll find one that you click with on the phone and the rest will be simple

katsu

We used a broker that was about a 2 hour drive from the property we were purchasing, so if you have one recommended where you currently live, that is fine too. They do not need to be in the area you are moving to.

We used brokers throughout our time with mortgages, as they knew what we didn't know about finding the best deals for our circumstances, and supporting us through the process. We had the most amazing broker who encouraged us to overpay, so I am sure she is part of the reason we are now MF.

If you do not have a perfect situation I would definitely go with a good broker.