Do I stick with Halifax or try with Nationwide for better rate?

hart89 · 14 December 2018 at 8:15PM

I am a first time buyer, have been in contact with a mortgage adviser on Habito. First they advised that Nationwide were the best option for me (2.29%, no fee, £500 cash back). I did a credit check , my credit file is pretty good usually but last month my score dropped 300 points . I know the score is irrelevant, but I was panicking about it so adviser suggested going with Halifax as they had 'similar' deal but they do a soft search on your credit file at DIP stage, so if it got declined we could go with a different lender.

I have done a few things to improve my credit file (took partners name off joint natwest account as he has poor credit so was worried it was negatively affecting me, paid £900 off credit card so bringing balance down a bit, and added a notice of correction to explain the reason for file showing I am not on electoral roll - this is because I applied to change my address during the annual canvass and the CRAs will not have this information updated until early January. I am on the electoral roll currently and have a certificate from my local authority to show this). The negatives on my file are that I opened several accounts - these being welsh water account , Vodafone (broadband in rental flat), natwest account )

My mortgage adviser got a Halifax DIP approved today (yay!). But then went on to say there is a £999 set up fee for 2.35% rate, and valuation is £200, and there is no cash back. They dit not clearly point this information out to me, I was under the impression it was similar to Nationwide just a slightly higher interest. I am a bit annoyed that I did not check this with them before they did a DIP. I have been on the Nationwide website and can see that there is a lower rate of 1.89% with fee of £999 available for FTB - not sure this is a rate only available if you go direct? I feel that the adviser is pushing me towards Halifax as it is a safer option, even though to me the rates are not as good and also there are lots of fees involved.

Not sure whether to stick with Halifax as like they pointed out if I go with Nationwide and it gets declined it will be a hard footprint , or take my chances and book an appointment with an adviser at nationwide.

kingstreet · 14 December 2018 at 8:18PM

I would have provided an illustration for each option before asking your opinion.

Most of us would.

I'd look at your Equifax and Call Credit files before deciding on a lender.

hart89 · 14 December 2018 at 8:39PM

I know, this is what I have thought in hindsight is that the options weren't clearly laid out to me. I know I should have probably requested this, so I'm annoyed that I didn't check before agreeing.

I have checked Equifax, and Call credit. I have added notice of correction about electoral roll information with Equifax, and also requested with Call credit that this be added but they don't seem to be getting back to me. I only have one late payment on a credit card from sept 2017. I have lots of settled accounts, settled my car finance last month so cutting my debt in half (paid £6333 balloon payment and no longer have £228 monthly car finance payment)

kingstreet · 14 December 2018 at 8:51PM

Notices of correction are a PITA and I wish people would leave them well alone. They drag attention to issues that would probably pass through the pipeline without touching the sides.

Whose bright idea was that, exactly?

If you have been on the voter's roll at a recent address and just moved, it isn't necessary to appear on there for every minute of the last six years.

TBH the amount of micro-management people think necessary to get a mortgage is just completely OTT.

We see people today, apply for a mortgage tomorrow and they are accepted. We don't spend months massaging the data to make them as attractive as possible.

Simple rules;-

pay your bills on time
don't take out credit if you plan to apply for a mortgage
don't change address if you don't have to
don't change jobs if you don't have to
don't expect credit repaid last week to show as such on the credit system
have your broker check what is most important for you - affordability or loan to value - don't pay off credit if you are affordability 'rich', when a lower loan to value would have helped if you hadn't used the money to repay that credit commitment last week!

hart89 · 14 December 2018 at 9:09PM

It was the CRA's idea to add a notice of correction. And apparantly from what I've read on here a small issue like not being on the electoral roll can make or break a mortgage application, so it seemed important to me.

kingstreet · 15 December 2018 at 10:29AM

hart89 wrote: »

It was the CRA's idea to add a notice of correction. And apparantly from what I've read on here a small issue like not being on the electoral roll can make or break a mortgage application, so it seemed important to me.

Never being on the electoral roll can be an issue. I did qualify the point.

It's a shame you didn't get decent mortgage planning advice. In 34 years I've never heard a broker suggest a NOC as a solution in helping a mortgage application. Quite the opposite, in fact.

Do I stick with Halifax or try with Nationwide for better rate?

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