About to apply with Halifax!

mr_munchem · 11 January 2018 at 4:37PM

I got an AIP from Halifax for £137,750 and I need to borrow about £135,000 and I'm going to do my application tonight, I'm feeling very nervous that I'll fail something but thought I'd write about it here to try and relieve some stress

Edit to add: meant to ask what an AIP really means, and how that translates into an offer? If you've been honest about your finances and there's nothing bad looking in your credit file, is it normally okay? Only thing I'm worried about is a garage undertook a hard credit search when they said they wouldn't for a hire purchase for a car that I never went through with, but there are two searches about 6 months ago? Other than that there's one search for a current account, one for utilities, and one for a credit card with Halifax (holiday card as no overseas charges). I'm probably just overthinking it, but no defaults, no CCJs, etc. only utilise about 30% of my credit available on a 0% purchases card which I'll clear before completion.

kingstreet · 11 January 2018 at 6:16PM

mr_munchem wrote: »

I got an AIP from Halifax for £137,750 and I need to borrow about £135,000 and I'm going to do my application tonight, I'm feeling very nervous that I'll fail something but thought I'd write about it here to try and relieve some stress

Edit to add: meant to ask what an AIP really means, and how that translates into an offer? If you've been honest about your finances and there's nothing bad looking in your credit file, is it normally okay? Only thing I'm worried about is a garage undertook a hard credit search when they said they wouldn't for a hire purchase for a car that I never went through with, but there are two searches about 6 months ago? Other than that there's one search for a current account, one for utilities, and one for a credit card with Halifax (holiday card as no overseas charges). I'm probably just overthinking it, but no defaults, no CCJs, etc. only utilise about 30% of my credit available on a 0% purchases card which I'll clear before completion.

Everything I've turned red is pretty unnecessary.

The valid bit is you are close to the top of affordability.

The vital bit you've omitted. What's the loan to value?

mr_munchem · 11 January 2018 at 6:22PM

Thanks for reassurance! It's 89% LTV, but can be a bit lower if necessary!

kingstreet · 11 January 2018 at 7:18PM

If your agreement in principle passed at 90%, chances are your full application will pass too.

Submit it and see what happens.

If there's an 'aftermath' come back and we'll deal with it...

Kpossible929 · 11 January 2018 at 10:36PM

When we spoke to Halifax (who we are taking out our mortgage with) we were told we had to do an AIP online first, which we did, and it offered us £106,000. We then had an appointment with one of their MAs who went over everything with a fine tooth comb and it came back that actually they would offer us £128,000 (we had included things we didn’t need to include such as student loans and credit cards that were paid off but not closed).

We had a £14,000 deposit so we could’ve technically gone up to £142,000 in a house but she advised us to sit somewhere between £130k - £135k as that gave us some room if our mortgage offer was to decrease on full application.

We only ended up buying for £125k in the end so I don’t know whether they’d have dropped the offer but she made it clear it was a good idea to give some leeway as a precaution.

Kpossible929 · 11 January 2018 at 10:38PM

Also, in terms of your other queries. My credit file was good, but I do have a credit card that had £2442 on it out of £2800 (so using quite a lot of my available credit, and my other half had 5/6 late payments dating back 3-4 years and we had no issues whatsoever.

mr_munchem · 11 January 2018 at 10:41PM

I passed the full credit check this evening! All I've got now is to send three payslips and have the valuation (and survey at the same time!), I feel so relieved to have got past the credit check stage!

Kpossible929 · 11 January 2018 at 10:46PM

Honestly, speaking to friends who had bought with other banks and reading some of the stories on here I was so panicked about the whole thing but we had to submit the same as you, 3 payslips each.
My other half had to give them his last credit card statement to prove the account was at 0 as it had only recently been paid in full and that was it. She did it all on that first meeting so there was no back and forth. I was surprised at how simple it was!

Hopefully it’s all smooth sailing for you but it sounds like you’ll be absolutely fine!

mr_munchem · 11 January 2018 at 11:02PM

I've had to give them my card number so they can check I've paid off my credit card as a special condition of the mortgage!

I was most nervous about the full credit check above everything else, so glad to have passed it. Thanks for your encouragement, hopefully it will be plain sailing.

About to apply with Halifax!

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