mortgage advice please

Hi all

I have a poor credit score (408 on Experian) with defaults totalling £3500 from 3/4 years ago (will be settled before completion also some use of pdl's. I applied for a mortgage of £102k with nationwide and got an agreement in principle. They also logged a hard search for the £102k after a soft search with Experian. All went through approved ok. My score has gone down to 387 due to this hard search. I am happy to do a full application with nationwide however I am unsure now. Will they decline the application at a later date or is the AIP with the hard credit search saying yes they will approve it all once I provide the payslips requested and asking as my income is what I said (it is). Any help is greatly appreciated as I am a first time buyer (lone applicant).

Thanks

16 Comments

You have your AIP, but depending what the full application throws up they can renege on the offer. If you have been completely up front then there shouldn't be any surprises. I wouldn't go for another AIP unless this one falls through, as you can see how it can impact on your credit rating. Are you ready to buy a house - have you found something you want to offer on? If not, you might want to hold off the full application for a few weeks until you have. Good luck with the new place once you get it!
Edited by: "Mermoo" 11th Sep 2016

Original Poster

Mermoo

You have your AIP, but depending what the full application throws up they … You have your AIP, but depending what the full application throws up they can renege on the offer. If you have been completely up front then there shouldn't be any surprises. I wouldn't go for another AIP unless this one falls through, as you can see how it can impact on your credit rating. Are you ready to buy a house - have you found something you want to offer on? If not, you might want to hold off the full application for a few weeks until you have. Good luck with the new place once you get it!



Hi yes. Found the house. Viewed it. Loved it. However current owners said they have an offer 1k over asking (120k) I however only applied for 120k so would need to find the extra few k to beat their offer. Also it's a risk as the bank may value it at 120k or less. Should I do a full application then put an offer in as I don't want to mess them about if my full application will be declined.

barrel24

Hi yes. Found the house. Viewed it. Loved it. However current owners said … Hi yes. Found the house. Viewed it. Loved it. However current owners said they have an offer 1k over asking (120k) I however only applied for 120k so would need to find the extra few k to beat their offer. Also it's a risk as the bank may value it at 120k or less. Should I do a full application then put an offer in as I don't want to mess them about if my full application will be declined.



In these situations it's brutal - you need to think about yourself. Forget about messing people about - the whole mortgage/house-buying process in this country is a complete mess. If you want the house and are prepared to pay £122k (or more) then make the offer and follow up with your application. However, be prepared for the other party to also up their offer. Set your absolute maximum price now and stick to it. Don't forget to add fees into your costs too...

Original Poster

Mermoo

In these situations it's brutal - you need to think about yourself. … In these situations it's brutal - you need to think about yourself. Forget about messing people about - the whole mortgage/house-buying process in this country is a complete mess. If you want the house and are prepared to pay £122k (or more) then make the offer and follow up with your application. However, be prepared for the other party to also up their offer. Set your absolute maximum price now and stick to it. Don't forget to add fees into your costs too...



We have set a maximum of 130k all in inc fees survey etc so will try at 122k and if need be go up to 125k but that's it. However as bank has approved the 120 we will probably need to find the extra ourselves. We are first time buyers so no chain which is good and may help. Thanks for the advice.
Edited by: "barrel24" 11th Sep 2016

An AIP means nothing and the system that generates the offer is often not as robust on credit scoring as the full application. If the system rejects you can appeal, if it refers then you are at the mercy of the underwriters. What's the LTV, preferred term and budget?
Edited by: "2IceCubes" 11th Sep 2016

Please remember the Experian score is meaningless to Nationwide, they will have their own criteria and scoring system.
Edited by: "kiish" 11th Sep 2016

Mermoo

In these situations it's brutal - you need to think about yourself. … In these situations it's brutal - you need to think about yourself. Forget about messing people about - the whole mortgage/house-buying process in this country is a complete mess. If you want the house and are prepared to pay £122k (or more) then make the offer and follow up with your application. However, be prepared for the other party to also up their offer. Set your absolute maximum price now and stick to it. Don't forget to add fees into your costs too...



Why the rest of the U.K. can't copy the Scotland buying/selling process beats me.

No faffing about, once an offer is accepted, thats it, property is no longer for sale, and no further offers can be accepted by the seller.

andynicol

Why the rest of the U.K. can't copy the Scotland buying/selling process … Why the rest of the U.K. can't copy the Scotland buying/selling process beats me.No faffing about, once an offer is accepted, thats it, property is no longer for sale, and no further offers can be accepted by the seller.



Totally agree

Original Poster

2IceCubes

An AIP means nothing and the system that generates the offer is often not … An AIP means nothing and the system that generates the offer is often not as robust on credit scoring as the full application. If the system rejects you can appeal, if it refers then you are at the mercy of the underwriters. What's the LTV, preferred term and budget?



Ltv 85% term over 40 years. Budget £130k all inc. nationwide are only lender to do a hard search for the 102k (18k deposit but may have to top up 18k to 20 if price goes up)
Edited by: "barrel24" 11th Sep 2016

Original Poster

kiish

Please remember the Experian score is meaningless to Nationwide, they … Please remember the Experian score is meaningless to Nationwide, they will have their own criteria and scoring system.



I know thanks. Was just quoting to show how it has affected. None of the others have affected the score apart from nationwide.

Original Poster

andynicol

Why the rest of the U.K. can't copy the Scotland buying/selling process … Why the rest of the U.K. can't copy the Scotland buying/selling process beats me.No faffing about, once an offer is accepted, thats it, property is no longer for sale, and no further offers can be accepted by the seller.



Agree although if they had received an offer and aren't just trying to stop us putting in a lower offer then we wouldn't have a chance.

barrel24

I know thanks. Was just quoting to show how it has affected. None of the … I know thanks. Was just quoting to show how it has affected. None of the others have affected the score apart from nationwide.



Hard searches will always affect your score, soft searches wont.

Original Poster

kiish

Hard searches will always affect your score, soft searches wont.



I understand that it just seemed strange that they did a soft search followed by a hard search for the amount and then approved in principle.

The mortgage lender will likely want proof that your defaulted loans have all been settled, and will likely request this in writing, from the institution that was defaulted against, as sometimes these can take a while to show at the experian end. I'm fairly certain that they will make the mortgage conditional upon that fact, so you really need to get that sorted.

barrel24

Agree although if they had received an offer and aren't just trying to … Agree although if they had received an offer and aren't just trying to stop us putting in a lower offer then we wouldn't have a chance.



But then if they had accepted an offer then theres a high possibility that you wouldn't have even got a viewing.

In your case the house asking price is £120k and the seller has an offer of £121k, in Scotland if they had accepted that offer then you wouldn't have got a viewing, as it would be off the market, pending missives being exchanged.

Seller can of course not reply to an offer if they had viewing scheduled, but mostly the first offer that meets there satisfaction is accepted.

Much better for buyers as they know where they stand, non of this bidding war that seems to go on outwith Scotland.

Original Poster

andynicol

But then if they had accepted an offer then theres a high possibility … But then if they had accepted an offer then theres a high possibility that you wouldn't have even got a viewing.In your case the house asking price is £120k and the seller has an offer of £121k, in Scotland if they had accepted that offer then you wouldn't have got a viewing, as it would be off the market, pending missives being exchanged.Seller can of course not reply to an offer if they had viewing scheduled, but mostly the first offer that meets there satisfaction is accepted.Much better for buyers as they know where they stand, non of this bidding war that seems to go on outwith Scotland.



Well they have apparently had 3 offers now for 121,500 so will go 122 and that it tbh
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