Mortgage help/advice needed
Discussion
Yesterday me and my partner applied for a mortgage through a broker with a 10% deposit.
We had an agreement in principle with halifax 3 months prior to going to see this broker and we are now being told that we need 15% deposit and everyone she contacted said the same thing.
I have 3 defaults on my credit file from 3 years ago so this is more than likely why it is the case but i have a decent paid job (for my age) and my partner has a decent income.
So does this seem right? Even though we have been accepted in principle by halifax already for a 10%
Help would be much appreciated!
We had an agreement in principle with halifax 3 months prior to going to see this broker and we are now being told that we need 15% deposit and everyone she contacted said the same thing.
I have 3 defaults on my credit file from 3 years ago so this is more than likely why it is the case but i have a decent paid job (for my age) and my partner has a decent income.
So does this seem right? Even though we have been accepted in principle by halifax already for a 10%
Help would be much appreciated!
AIP's literally mean nothing. Most people I deal with seem to be slightly obsessed with getting "the mortgage agreed first".......but an AIP is not getting it agreed first at all. I could get an AIP for anyone for £5m today if they tell me they earn £1.5m, but it will fall down immediately at the full application stage if everything isn't as you've said it is.
With regards to Halifax, their AIP's are completely useless. Their AIP is only a soft credit scoring meaning that it doesn't leave a search on your credit file. Therefore, it's only high level information and date retrieved for the decision. Halifax only hard credit score you at the point of full application, which is where the problems come in when the system then either declines the application or alters the lending/LTV amounts.
I think the myth about AIP's is peddled by Estate Agents who can't be bothered to show people round properties if there is a chance they can't get a mortgage. People really should not be applying for credit (which is what you are doing) until you have at least seen a property you are interested in, not "just to see if we get accepted" because even being accepted is no guarantee that the mortgage will be granted.
We recently had an AIP accepted for client with Natwest. She took two weeks to get her documents to us, we submitted the full app and it declined. Spoke to Natwest and they said the initial AIP credit score was a borderline accept but now was a decline score, they said something must have changed in those two weeks.....spoke to the client and she said she'd applied for a bank account and a new mobile phone in that fortnight, those two searches reduced her score to a decline score......
OP, sorry to hear of your woes. When you say "defaults" do you mean missed payments or do you mean actual accounts that have gone into default and are registered on your credit file as "In Default"? If it's the first one then I'm sure someone will lend at 90%.......if it's the latter then I surprised you even passed the Halifax soft scoring AIP, if you have three defaults I think you may be struggling at 90%........
With regards to Halifax, their AIP's are completely useless. Their AIP is only a soft credit scoring meaning that it doesn't leave a search on your credit file. Therefore, it's only high level information and date retrieved for the decision. Halifax only hard credit score you at the point of full application, which is where the problems come in when the system then either declines the application or alters the lending/LTV amounts.
I think the myth about AIP's is peddled by Estate Agents who can't be bothered to show people round properties if there is a chance they can't get a mortgage. People really should not be applying for credit (which is what you are doing) until you have at least seen a property you are interested in, not "just to see if we get accepted" because even being accepted is no guarantee that the mortgage will be granted.
We recently had an AIP accepted for client with Natwest. She took two weeks to get her documents to us, we submitted the full app and it declined. Spoke to Natwest and they said the initial AIP credit score was a borderline accept but now was a decline score, they said something must have changed in those two weeks.....spoke to the client and she said she'd applied for a bank account and a new mobile phone in that fortnight, those two searches reduced her score to a decline score......
OP, sorry to hear of your woes. When you say "defaults" do you mean missed payments or do you mean actual accounts that have gone into default and are registered on your credit file as "In Default"? If it's the first one then I'm sure someone will lend at 90%.......if it's the latter then I surprised you even passed the Halifax soft scoring AIP, if you have three defaults I think you may be struggling at 90%........
Sarnie said:
AIP's literally mean nothing. Most people I deal with seem to be slightly obsessed with getting "the mortgage agreed first".......but an AIP is not getting it agreed first at all. I could get an AIP for anyone for £5m today if they tell me they earn £1.5m, but it will fall down immediately at the full application stage if everything isn't as you've said it is.
With regards to Halifax, their AIP's are completely useless. Their AIP is only a soft credit scoring meaning that it doesn't leave a search on your credit file. Therefore, it's only high level information and date retrieved for the decision. Halifax only hard credit score you at the point of full application, which is where the problems come in when the system then either declines the application or alters the lending/LTV amounts.
I think the myth about AIP's is peddled by Estate Agents who can't be bothered to show people round properties if there is a chance they can't get a mortgage. People really should not be applying for credit (which is what you are doing) until you have at least seen a property you are interested in, not "just to see if we get accepted" because even being accepted is no guarantee that the mortgage will be granted.
We recently had an AIP accepted for client with Natwest. She took two weeks to get her documents to us, we submitted the full app and it declined. Spoke to Natwest and they said the initial AIP credit score was a borderline accept but now was a decline score, they said something must have changed in those two weeks.....spoke to the client and she said she'd applied for a bank account and a new mobile phone in that fortnight, those two searches reduced her score to a decline score......
OP, sorry to hear of your woes. When you say "defaults" do you mean missed payments or do you mean actual accounts that have gone into default and are registered on your credit file as "In Default"? If it's the first one then I'm sure someone will lend at 90%.......if it's the latter then I surprised you even passed the Halifax soft scoring AIP, if you have three defaults I think you may be struggling at 90%........
Hi sarnie,With regards to Halifax, their AIP's are completely useless. Their AIP is only a soft credit scoring meaning that it doesn't leave a search on your credit file. Therefore, it's only high level information and date retrieved for the decision. Halifax only hard credit score you at the point of full application, which is where the problems come in when the system then either declines the application or alters the lending/LTV amounts.
I think the myth about AIP's is peddled by Estate Agents who can't be bothered to show people round properties if there is a chance they can't get a mortgage. People really should not be applying for credit (which is what you are doing) until you have at least seen a property you are interested in, not "just to see if we get accepted" because even being accepted is no guarantee that the mortgage will be granted.
We recently had an AIP accepted for client with Natwest. She took two weeks to get her documents to us, we submitted the full app and it declined. Spoke to Natwest and they said the initial AIP credit score was a borderline accept but now was a decline score, they said something must have changed in those two weeks.....spoke to the client and she said she'd applied for a bank account and a new mobile phone in that fortnight, those two searches reduced her score to a decline score......
OP, sorry to hear of your woes. When you say "defaults" do you mean missed payments or do you mean actual accounts that have gone into default and are registered on your credit file as "In Default"? If it's the first one then I'm sure someone will lend at 90%.......if it's the latter then I surprised you even passed the Halifax soft scoring AIP, if you have three defaults I think you may be struggling at 90%........
Yes i have 3 accounts that have fell into default 3 years ago, I needed a debt management plan at the time as i lost my job.
I have heard AIP is nothing and not to pay attention to.
What would you recommend i do and do you think 15% would be a fair amount to get the mortgage?
Thanks
joerama said:
Sarnie said:
AIP's literally mean nothing. Most people I deal with seem to be slightly obsessed with getting "the mortgage agreed first".......but an AIP is not getting it agreed first at all. I could get an AIP for anyone for £5m today if they tell me they earn £1.5m, but it will fall down immediately at the full application stage if everything isn't as you've said it is.
With regards to Halifax, their AIP's are completely useless. Their AIP is only a soft credit scoring meaning that it doesn't leave a search on your credit file. Therefore, it's only high level information and date retrieved for the decision. Halifax only hard credit score you at the point of full application, which is where the problems come in when the system then either declines the application or alters the lending/LTV amounts.
I think the myth about AIP's is peddled by Estate Agents who can't be bothered to show people round properties if there is a chance they can't get a mortgage. People really should not be applying for credit (which is what you are doing) until you have at least seen a property you are interested in, not "just to see if we get accepted" because even being accepted is no guarantee that the mortgage will be granted.
We recently had an AIP accepted for client with Natwest. She took two weeks to get her documents to us, we submitted the full app and it declined. Spoke to Natwest and they said the initial AIP credit score was a borderline accept but now was a decline score, they said something must have changed in those two weeks.....spoke to the client and she said she'd applied for a bank account and a new mobile phone in that fortnight, those two searches reduced her score to a decline score......
OP, sorry to hear of your woes. When you say "defaults" do you mean missed payments or do you mean actual accounts that have gone into default and are registered on your credit file as "In Default"? If it's the first one then I'm sure someone will lend at 90%.......if it's the latter then I surprised you even passed the Halifax soft scoring AIP, if you have three defaults I think you may be struggling at 90%........
Hi sarnie,With regards to Halifax, their AIP's are completely useless. Their AIP is only a soft credit scoring meaning that it doesn't leave a search on your credit file. Therefore, it's only high level information and date retrieved for the decision. Halifax only hard credit score you at the point of full application, which is where the problems come in when the system then either declines the application or alters the lending/LTV amounts.
I think the myth about AIP's is peddled by Estate Agents who can't be bothered to show people round properties if there is a chance they can't get a mortgage. People really should not be applying for credit (which is what you are doing) until you have at least seen a property you are interested in, not "just to see if we get accepted" because even being accepted is no guarantee that the mortgage will be granted.
We recently had an AIP accepted for client with Natwest. She took two weeks to get her documents to us, we submitted the full app and it declined. Spoke to Natwest and they said the initial AIP credit score was a borderline accept but now was a decline score, they said something must have changed in those two weeks.....spoke to the client and she said she'd applied for a bank account and a new mobile phone in that fortnight, those two searches reduced her score to a decline score......
OP, sorry to hear of your woes. When you say "defaults" do you mean missed payments or do you mean actual accounts that have gone into default and are registered on your credit file as "In Default"? If it's the first one then I'm sure someone will lend at 90%.......if it's the latter then I surprised you even passed the Halifax soft scoring AIP, if you have three defaults I think you may be struggling at 90%........
Yes i have 3 accounts that have fell into default 3 years ago, I needed a debt management plan at the time as i lost my job.
I have heard AIP is nothing and not to pay attention to.
What would you recommend i do and do you think 15% would be a fair amount to get the mortgage?
Thanks
Naturally the more deposit you can put in, the less risk it is for a lender. At 85% you have chance with a few lenders that will ignore the defaults if a) they are settled and b) registered more than three years ago.........
joerama said:
All the defaults have been settled and are over 3 years old so with a 15% hopefully it might get accepted.
Any advice for me regarding this? what company's should we approach?
I knew it would be difficult with defaults but now at least i know its possible.
If you need help with this feel free to drop me a PM, happy to have a chat! Any advice for me regarding this? what company's should we approach?
I knew it would be difficult with defaults but now at least i know its possible.
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