First Time Buyer (halifax via mortgage broker)

barrglas

Hey all,
New to this, although ive stalked it for answers before

Me and my partner decided to start looking into buying our first home together (both 30, first time buyers)
We found the perfect new build property which is due to be completed in April.
I was slightly worried as my credit is bad, his is perfect.
We got in touch with a mortgage broker and applied anyway and were told we passed pre-approval. We are also using Help to Buy scheme.

We reserved the plot, picked colours etc and have been told by the broker that the Halifax mortgage is approved subject to the valuation. Over the Christmas/new year break this was carried out and it looks like the mortgage application will be submitted tomorrow.

The thing thats bothering me is i didn't think id get a mortgage, as my credit score is bad.
I took a credit card out when i was 18, run up £1200 debt and then the interest free period ran out, so it spiraled to £2100. I kept it to myself and ignored all letters i got from the bank and debt collectors.
My partner has had 10,000+ inheritance money in his current account for the last 10 years ( i know, ive told him it should be in a savings account) and has never missed a payment for anything, always been on the electoral register and a perfect credit score.

My last payment to the card was around 2011, the bank sold the account in 2013 to Lowell, who then stopped and marked it as defaulted in 2016. The last thing i applied for was a car on PCP 3 years ago, and was declined due to my score. The only thing im thinking is that my partners score and savings are outweighing mine. Is this something they take into account?

The other thing thats bothering me is i pay for Equifax and ive never had any soft or hard searches carried out on my credit file, which makes me think the broker hasnt submitted anything at all yet and i dont want to go any further with buying furniture until this happens.

Anyone got any ideas? I know esurv carried out the survey on christmas eve, so im guessing the Halifax is aware, unless, can Brokers arrange a valuation on behalf of the application or is it only the mortgage lender that can do that?

Any info, no mater how short will help

Exodi

My 2¢ are that if you've already been formally approved then there's nothing to worry about (except the valuation of course)! With that said, all of your finance issues are historic and I don't see why they should be of concern to a lender - if they didn't lend to anyone that had missed a payment at some point in their life, they wouldn't lend to anyone.

You mention you pay for Equifax - please cancel this. ClearScore let's you access your Equifax credit report for free. Likewise, Noddle lets you access your CallCredit report and CreditMatcher (or this forums Credit Club) lets you access your Experian report for free.

To note, it's not completely out of the ordinary for hard searches to be seemingly absent. It may be the case that your partner met affordability criteria on his own so it seemed redundant to check you, or it may be that they deemed a credit check unnecessary. I speak from experience slightly here as Nationwide only ran one hard credit check on me, and this was between exchange and completion (presumably to check I hadn't taken out tons of loans!).

I just read further down your post, namely "i dont want to go any further with buying furniture until this happens."

Please do not do this until you move in... I know your excited but if you're taking things out on credit you have the possibility of having your mortgage offer removed just before completion for breaching terms....

You also run the risk (which I see all the time), of buying furniture crazy early, then when you unpack it at your new house, realise it doesn't match or is damaged and end up being unable to return it due to the the time passed.

It's so important to be patient...

Valuations will typically be carried out solely to the lenders request and the broker will have no input on this.

Retired_Mortgage_Adviser

Is/was your broker aware of the 2016 default?

asm89

You've said the application is being submitted tomorrow but you had the survey done over Christmas. Surveys only happen following a formal application??

Hodge58

Most lenders who carry out an AIP or Dip Agreement in principle or decision in principle at outset only do a soft search. On receipt of the application they will do a full credit check. if your application has not been submitted then a survey will not be carried out so i suspect your broker maybe telling porkies.
i suspect your broker has not submitted the app over Christmas to start his new year targets well.

barrglas

HI all,

Thank you very much for the advice!, to add i only thought the broker didn't submit the application yet because no soft or hard searches had been seen on my credit report.
We paid the survey fee, and it was carried out on 23rd December.
Today we have received a printed copy of the valuation and its valued at £5 more than we are paying, which is great. It also means the application had been submitted.

Our mortgage broker did not tell us he was off from 24th-6th January, so this also made us think he hadn't submitted it, but it looks like he has.

Looking at the valuation, it states that any changes to incentives need to go back to the valuer, we are currently negotiating with the builder to supply integrated appliances in the asking price due to last minute changes to road layouts which will affect us greatly being a ground floor apartment. Is this something that is generally stuck to?

I contacted the broker today and was told the application was accepted subject to my prtner supplying his december payslip (he started a new job in november)

Cheers,

barrglas

Just a quick update:

Got the mortgage offer via email yesterday, paper copy should be here tomorrow :-)

Still haven't had any credit checks on my account?

I'm happy at least I know it's done, not to apply to Help to Buy Scotland.

Moneyminded

You mention that you have checked your credit file with Equifax and nothing is appearing. Maybe worth checking your credit files with the other credit reference agencies Exodi mentioned above?