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Join our Property forum for renovation, DIY, and house selling advice.

Property/DIY

Mortgage in principle - how reliable?

48 replies

Loubylou79 · 22/07/2015 21:13

Just after a bit of advice about how reliable a mortgage in principle is. Bit of background. My husband had some bad credit which showed up on his credit file unexpectedly after a mortgage in principle with the woolwich. This was then declined for this reason. Just had another mortgage in principle agreed with TsB. They know about the adverse credit and still approved us in principle so how likely is it that we will actually get the full mortgage? Obviously very anxious as we have a property we want to buy? Thanks in advance.

OP posts:

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LadyBroker · 15/03/2017 09:19

Hi Quiche91,

How did you get on with your mortgage?
Did you manage to secure the mortgage your broker applied for and get your home.
It would be great to gt an update.

LadyBroker

Quiche91 · 25/02/2016 10:22

Oh ok. Just we expected an offer or decline on Monday however they instead said they will need a reference from my employer. However I'm self employed so they can't really prove anything. They knew my circumstances right from the start though

mawbroon · 25/02/2016 09:50

Quiche, when I was working in mortgages, they sent a reference to everyone's employer so it wasn't a sign of anything!

Twistedheartache · 25/02/2016 09:49

Oh and afterwards I found out that the issue was the tosspot in branch who despite me handing him an excel spreadsheet with our outgoings current & future proving we could afford £950 per month put £900 into his report

Twistedheartache · 25/02/2016 09:47

HSBC gave a mortgage in principle for £380k which was way more than we could have afforded to pay. When actual application went in they offered £220k rather than the £250k we needed.
Eventually got upto £250k with proof of bonus & additional p60 from non maternity leave years but it was incredibly stressful.
I think I'd use a broker if I ever move again

Quiche91 · 25/02/2016 09:40

TSB have sent a reference questionnaire to my employers. Is this a good or a bad sign.

Quiche91 · 15/02/2016 09:57

That's brilliant good for you, I feel having a decision in principle with TSB after a under writer has already looked at it done full credit check and reviews pays slips got survey done it must be hopefull they have nothing left to do!

Dungandbother · 15/02/2016 09:04

Oh I should add that I was interviewing them when they picked up the phone call. It was quite funny. Pretty much every single one had to pootle off to ask their manager. Several times. I got quite adept at asking them to make a list of my circumstances and then ask in full.

Dungandbother · 15/02/2016 09:01

I recently enquired around. I have tax credits, high child care and will eventually have court ordered maintenance when my ex gets off his arse with the divorce.

I was completely upfront at the beginning and laid out my wares. I was surprised at the vast differences the lenders imposed over the circumstances, 100% or 50% or 0% of court order maintenance, no to tax credits yes to child benefit. Or vice versa. Huge variances.

I didn't let anyone do a soft credit check until I found who was likely to lend to me. That was the woolwich. Who basically told me they will not make a decision at all and my entire pack had to go to the underwriter.

Came back a week later with offer confirmed.
I had everything in place to start with, payslips, statements and solicitor details etc.

It's very stressful.

kirinm · 15/02/2016 07:14

We were totally honest and they already had our bank statements so hopefully we'll be fine.

Quiche91 · 15/02/2016 06:54

My decision in principle has already been to underwriter. I work off shore and they were concerned about the property being empty, so it went to an underwriter who said it was ok because my fiancé (second applicant) would be in the house. So one underwriter has already seen my bank statements ect. I'm aware it will go to a new underwriter with full application.

AliceJennifer23 · 14/02/2016 23:40

We did one with Halifax and thankfully it was all correct as we put an offer in on a house the next day. I guess it depends on your credit history, circumstances and how honest you were.

mawbroon · 14/02/2016 23:31

Yep, and they might see outgoings on your bank statements that they want more info about which they might not like the sound of when you tell them about it etc etc etc.

I always quite enjoyed seeing bank statements amazing how some people work their finances!!

MrsPJones · 14/02/2016 23:31

No, they will look at outgoings in the new property e.g. services charges, not usually current rent.

kirinm · 14/02/2016 23:29

Sorry £500 more a month

kirinm · 14/02/2016 23:29

Do they take into account how much rent you pay? My rent is £1600 a month which is approximately £500 LESS a month than our mortgage repayments would be.

MrsPJones · 14/02/2016 23:18

There are 3 main credit rating agencies, Equifax, Experian and Callcredit. For a decision in principle, they will usually only check one of these, but may check a 2nd on full application. Also, you can have a high credit score on a report, but if an underwriter looks more closely, there are some things e.g. an old pay day loan or a late mortgage payment, that will mean some lenders will not lend to you at all. Also, when they look in-depth at incoming versus outgoings they could revise how much they will lend.

kirinm · 14/02/2016 23:06

That makes sense. They do it for rentals too.

mawbroon · 14/02/2016 22:22

Well, I've been out of it for a while, but back in my day, they asked employers to confirm in writing that you had been there as long as you said you had and that you were in a permanent contract and not on a probationary period. It may have changed of course.

kirinm · 14/02/2016 18:36

What references do they take? Sorry, I realise this sounds totally naive!

mawbroon · 14/02/2016 18:11

Undisclosed debts are a biggie. Or if things just don't add up or references don't check out.

And sometimes they won't lend on a specific property, so it's the property being turned down rather than the applicants

kirinm · 14/02/2016 18:02

I'm hoping that's the same for us. We produced our payslips / DP's three years of accounts, details of my undergraduate and post graduate loans, credit card info. Hope that's an indication they carried out a thorough check.

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Quiche91 · 14/02/2016 17:22

Plus everyone who seems to say they couldn't get one, has only had a small credit check done. They have had everything from me bank statements wage slips prove of adress passport, so I'm quite hopefull

Quiche91 · 14/02/2016 17:20

Well I have everything and they have done a full credit check on me. TSB do seem to be easy and my mortgage adviser seems to be on the ball. So I'm quite hopeful.

kirinm · 14/02/2016 17:06

What's the reason you are later turned down?

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