Mortgage DIP soft search. Worth a try? Please Help and Advise

jonnym8083

Hi all and thanks for looking over my post. Me and my partner are looking to obtain a mortgage as first timer buyers with help to buy. We both have some missed payments in the past.
I have an account payday loan that was running for nearly 2 years with arrangement to pay and they marked late payments against everyone.
This was settled October last year. I have spoken to a broker who said because of the amount of late payments we won’t be looking at high street as most lenders don’t allow 4 or more arrears is 2 years. My credit file however shows as excellent and partners is good. No debt apart from partners car finance.
I have been looking of lending criteria myself and see Santander who I Bank with allow payments that are over 12 months. DIP is soft search so is it worth a shot with them before we look at other lenders with worse percentage as it won’t effect out credit?
If DIP is accepted and all info is spot on then is there any reason why we wouldn’t be accepted for a mortgage?
Any help would be great.

jashdown

If I were you (and I did this myself) go onto Compare the markets mortgage eligibility checker. This will answer your query twofold. One - it’ll tell you if you are credible borrowers based on credit reports. Two - which lenders might accept you based on your circumstances.

A broker however will give you better insight into which lenders will accept you despite having a good credit file (the score isn’t important it is the report itself which lenders look at)

If necessary, use an online broker (I used Habito) who have been very good at a advising which lenders are suitable

jonnym8083

Ok and does this not effect your credit score? Was this accurate for you? Thanks

jashdown

jonnym8083 wrote: »

Ok and does this not effect your credit score? Was this accurate for you? Thanks

It will access your credit report, but will only do a soft search which lenders won't be able to see.

It is only really as good as the data you enter in though - if you haven't found a property yet, enter in hypothetical property details and be accurate as to what you enter in each field otherwise you are just kidding yourself.

I used it and then used Habito for their free advice. My valuation is today with nationwide, just waiting on the outcome so it has certainly worked for me

jonnym8083

Ok that’s great... I have just done this and it’s come up with a lender and next to them it states “we have a higher degree of confidence that this lender would lend you your requested borrowing amount”
Is this what yours said or did yours day pre approved or anything like that. Just wary of applying and having hard checks on us when our credit it’s taken perfect anyways. Thanks for your help btw

jashdown

Who was the lender?

I had plenty that came up with 'higher degree of confidence' and would use this as a comfort blanket that in principle that lender can't see anything obvious in the background that would cause them not to lend.

As it happens, my broker advised to go with Nationwide who were only a moderate degree of confidence on that assessment who have accepted my mortgage subject to valuation.

What i am saying is, use that as a guide, let a broker earn the money. If you don't like their advice, you can always apply direct to the lender

MovingForwards

With the AP marker Santander won't lend to you, HSBC are also strict. Halifax are fairly open, but the AP marker is going to be your stumbling block.

Lenders do not see your score nor your rating, they see the credit history, good / bad and have their own criteria.

Don't start doing DIPs all over the place, speak with a whole of market adverse credit mortgage broker, there are a few who post on this forum, maybe wait and see what they say or approach a broker directly.

jonnym8083

Thanks all... the only lender that came up with that wording was platform who I believe are part off co-op bank. All the others were saying lender may require more information to establish eligibility.
The lender who marked my score down did not mark them as AP. It has number 3’s against each months. Not sure if this makes a diff. Looking at platform criteria all it says about arrears is that 2 unsecured are allowed within last 12 months which we have none inside the 12 months they are older. Thanks everyone again

nik_k

MovingForwards wrote: »

Don't start doing DIPs all over the place, speak with a whole of market adverse credit mortgage broker, there are a few who post on this forum, maybe wait and see what they say or approach a broker directly.

I fully agree with this advice - Habito aren't the brokers you should be looking to deal with, as they essentially 'cherry pick' the easiest applications, and don't want much to do with the more complex applications.

I will PM you with the details of the brokers we used recently, they were really good and explained everything very well.

EDIT - already PM'd you the details of our broker, as I've replied to another of your threads!

jonnym8083

Thanks very much

jonnym8083

Used the broker u mentioned... DIP approved with nationwide. Fingers crossed everything continues to go our way.