Precise offer and HTB

kingstreet

Damien83 said:

kingstreet said:

HTB Affordability is a simple check. However, the usual standard rate 4.8% will be replaced by the follow-on rate from your offer. Why didn't your broker do this prior to the mortgage application. We are newbuild specialists and we wouldn't have done affordability for one without doing the other at the same time...

Thank you for your reply, we have had an offer from precise at 3.64% as I said before (our credit is horrific from 2017 so cant complain and fixed for 2 years. 

My broker said something about all good on affordability calculator and should have the go ahead soon.
I just heard that they do a credit check etc.. ( HTB ) 

Thanks 

It's not the initial rate I'm talking about. It's the "follow-on rate after that the HTB Agent enters in the HTB Affordability Calculator to establish sustainability. For a Precise 3.64% it's BBR + 4.75%, or 5.5% per annum. You should download a copy of the HTB Calculator and do it yourself.
https://www.gov.uk/government/publications/homes-england-help-to-buy-equity-loan-calculator-and-guidance

Damien83

Thank you kingstreet,
I have just punched in all the details and it came out at debt to household income ratio of 28% guessing that is ok? 
Thanks 

kingstreet

Only red lights are an issue.

onthemend88

Hi @Damien83
We will be applying to Precise in the next few weeks and have a very similar history to yours (CCJ's and defaults, ranging between 2015-2017) all satisfied and the most recent being almost 3 years old. 
How did you find the process with Precise? What documents did you have to send in all together and did they ask you for many additional documents/questions? 
Hope you don't mind me asking. 

Damien83

Hi @onthemend88

Having 10+ defaults between us and a CCJ I was expecting a big fat decline from precise! But as you are aware we have our offer now

So, what did they ask for? They asked for 3 months pay slips from us both and our P60's and photo ID (we gave driving license) then wife gave a gas bill and i gave talk talk statement for proof of address. 

The additional item they wanted from me was a bill from 1 year ago as I wasn't on electoral (registered now) 

Other than that it was straight forward. Me and my wife was 100% honest on application with broker and precise want even bothered that none of the defaults are un-satisfied. 

I believe they ignore defaults and CCJS over 24months old.

onthemend88

Thanks @Damien83
I am so nervous about putting our application in but at the same time, cannot wait to get the ball rolling either! 
Hopefully putting the full application in next Friday...and hopefully it will go as smoothly as your application. 

Damien83

I think you'll be fine if you pass their credit scoring you should be fine. 

When was your last default and CCJ? 

onthemend88

@Damien83
Between myself and husband, our last default was December 2016 and last CCJ June 2017. Between us both we have 7 defaults and 5 CCJ's...nothing to be proud of but circumstances at the time (3 years of being on an NHS bursary to do my midwifery training) meant that we either fed, clothed and kept our family warm and defaulted on our outstanding debts or focussed on our debts and neglected our family...what are you going to do?
I know it was only temporary for 3 years and we probably could have dealt with it all better in hindsight but as soon as I qualified and started earning a salary, we paid the debts off and have managed to save a considerable amount of money. 
I am hoping they see past our historical issues. 

Damien83

I think most that use precise have had a sticky patch in the past, I am no different. Similar to you, back in 2017 wife wasn't working and I was on 28k we had to rent privately and we recieved some help ie housing benefit and working tax credit as we had kids, our issues started really when all of a sudden everything stopped! We had been over paid by quite a lot! I argued as they were wanting payslips and bank statements and were arwarded benefits based off of the payslips and statements. It dragged and dragged and by then things got out of control! Defaults and the CCJ. 

We decided to get off of that system and get on a journey to repair and eventually by a house. Things now to back in 2017 are a lot better and that why I think precise gave us a mortgage as we can now show that was in the past.

Are you using the help to buy?

onthemend88

@Damien83
It can happen to anyone can't it but the most important thing is that is all behind us now
Yes we will be using Help to Buy and the plan is to fix for 2 years and then hopefully remortgage with the majority of the equity loan and staircase with our savings. Hopefully in 2 years time, our broker will be able to get us with a high street lender...that is the plan anyway haha! 
Have you got a completion date for your new house yet?