Decision in Principle

chrmc

So the situation is that my partner and I earn a combined salary of £68k. We have some existing credit commitments (Two credit card, a store account and one unsecured loan) which have balances and are being paid above the min payment each month.

My partners credit is good with no negative markers, mine however, is poor with two satisfied defaults. One was from Capital One and the second from O2. They were registered in Jan and June 2018 and satisfied in full June 2020. The amounts were £500 and £300.

We have £20k ready for a deposit and looking a property around 200k so LTV 90%

Nationwide and NatWest have provided a DIP at 90% and Halifax at 85%.

What are the chances that nationwide and NatWest would go through full application without being knocked back? I was shocked with nationwide as I know they can be very strict.

chrmc

Can anyone provide any views to this 

SuseOrm

Im surprised at all of them given my experience with them.  Do a little bit of online research into the Natwest before you take a mortgage with them there’s people having enormous problems with them.  

bjp1990

@chrmc from my experience the high street bank lenders probably won’t follow through with a mortgage even after giving the mortgage in principle. 

My partner has an perfect Experian credit score of 999 & mine was in the ‘fair’ banding. Our combined salary is £90000 and we had a 25% deposit of over £80000. 

I did have some debt, but combined it was will under the debt to income ratio. We had zero issues obtaining any DIP From all high street lenders, even going as far as valuations being carried out. And then they would turn us down!! 

I would advise speaking to a broker who will be able to give you the best information. We did find a lender who we had zero issues getting a mortgage with. We are at the last stages now. 

I have zero trust in DIP. Good luck!! 

bjp1990

@chrmc Sorry just to add my credit report is clean as in no defaults, or missed payments or any adverse credit. Just lower due to amount of debt I guess. I hope you have a better experience! But all the messing around with high street lenders has cause all sorted of delays with property purchase!!