FTB with previous payday loans/DMP

gpa333

Hi All,

I have been reading many peoples posts over the last few weeks and thought I should ask for some advice from the good people on here.

I am currently in process of getting a mortgage after putting in a offer for a house which has been accepted. We have a £25,0000 deposit and require a £187,000 mortgage (around 89% LTV). We have received a AIP from Santander for the full amount and have full application interview scheduled in for next week.

My biggest concern is that I have had previous payday and bank loans back in 2012 and went on a DMP to pay off all loans successfully around June 2014. I have also had one other payday loan last August made off successfully a month later and closed.

I have also checked my credit scores from the big 3 credit agencies. Experian shows excellent, Clearscore (Equifax) fair but Credit Karma (TransUnion) is poor. Also setup account with checkmyfle which shows all 3. Experian shows 2 adverse accounts which are both closed (bank and payday closed) while Equifax has 3 adverse and TransUnion lists 5 adverse accounts. The TransUnion one also shows 1 default for a payday loan back in 2013 which still shows as an open account even though it is paid off but I think it should fall off credit file in November this year as it will have been 6 year from the day it defaulted.

My concern is that although we have received an AIP for full amount needed, am I kidding myself that the application will pass for a mortgage with Santander?

I have read AIPs are sometimes worthless really because they are not full checks but I have seen on my credit file that the day we received our AIP from Santander they ran a credit application search on me (which I am assuming is a hard search because it is not an ID or quotation search) and only appears on the Experian report and not the others. Does anyone know if Santander have already done a hard credit application search on me and giving me an AIP is good sign or will they run another hard credit search on me again when the full application goes in. It only appears on the Experian report so at the moment they have not check any of the other reports. Anyone know if they are likely to check the others or if they just use Experian.

I have looked into the option of using a mortgage broker but as already have an AIP directly from Santander, should I pray and stick to this and see what their outcome is.

Sorry if I have babbled on but hope their is some positive news/experiences from people in similar situations or am I just setting myself up for failure. If the lender uses TransUnion report than I don't feel I have a chance.

Thank you.

ACG

There was a stage last year where we picked up 3 cases in the space of a month from people who had DIPs with Santander and then the application had been declined. It has not happened since - I suppose it was like buses.

DIPs are fairly accurate, so you would like to think that if the DIP has been agreed it will proceed. Why not see what the outcome is. If it all falls down, there will usually be a Plan B as Santander are rarely the last/only option.

gpa333

Thanks for the reply. Does anyone have any experience of Santander doing a hard credit application search for just the DIP/AIP? Are they likely to run further hard searches on my credit file. I am just hoping that it not an incompetent person who has run the check but not really checked anything. Their website states when DIPs are done, their credit checks don't affect credit rating but surely it does if a credit application search has been done.

Also, would appreciate if any who has had a mortgage agreed with Santander who which credit reports they check. Is Experian their main one they use or will they use one or both of the others?

My OH is more optimistic about these things but I carry more the worry so anyone with good experiences of Santander (or even bad) who have been in similar situations, please do share. thanks

ACG

They do soft footprints at DIP stage and then hard foorprints at full application stage.

[Deleted User]

Might be different direct to be fair. For brokers its definitely a soft search

Barclays recently changed to soft search for direct applications but intermediaries still do hard search. I remember hearing about this on the radio the other day so called Barclays as iwas writing this to confirm we still do hard search. Their website for customers on the other hand states:

Unlike making a mortgage application, we don't run a full credit check on you for an Agreement in Principle. Instead we ask credit reference agencies to confirm whether certain details you enter on the AiP form match what they hold on your credit file. This is recorded on your credit file as a 'quotation search', which means it won't be considered by other lenders if you apply for credit somewhere else.