Frustrated by unprepared FTB

xela_17 · 22 March 2006 at 11:45AM

We've had our house on the market for about 2 1/2 months. We had a FTB come and see it a couple of weeks ago and came back to see it again last week. Great, i thought. Then our EA said they were seeing their mortgage advisor. Alarm bells started ringing. Then today I'm told that they can't afford our house. :mad: Why do ftb do this? When we bought our first house we had an agreement in principle before we even started looking. It's so frustrating. :rolleyes: I suppose we can take a tiny bit of comfort from the fact that they didn't make an offer and then pull out but I still feel like punching something. Anyone else get this frustrated?

JennyW_2 · 22 March 2006 at 11:50AM

Surely it's the job of the EA to ensure that any serious FTB looking at properties should have an AIP - it's just common sense. I'd have a word with your EA if I were you....

madfrenchgirl · 22 March 2006 at 11:53AM

Xela, i do agree they were not prepared.

However, we did try to get our mortgage agreed in principleBEFORE we started looking, we had an appointment with the IFA and all and knew we could afford whatever price range BEFORE we started looking. Our mortgage failed to be agreed in principle before we found our house BECAUSE the mortgage companydecided to be a5ses about the number of addresses I have ahd in the past (had to change every 6 month for my course). So sometimes, people do mean to get prepared but just cant because of x and y reason. I our case, our IFA vouched for us and found us another mortgage and everything went pretty quick.

But I must agree that if your FTB's could not even afford the house, then what is the bl00dy point in looking? They must have lived in La-La-Land.

Just forget about it and move on, there will be lot more buyers out there who can actually afford it.

AndrewSmith · 22 March 2006 at 12:01PM

The only complaint I've ever had was about 8 years ago from a first time buyer. They came into my office and said they wanted a mortgage 100% of £120,000

I started to go through the presentation, then we came to income.

Applicant 1 £6,500 pa part time
Applicant 2 £6,000 pa dole money

I was amazed. No guarator, deposit, etc. I basically had a bit of a word with them about how it worked and the fact that they had to actually work to get a mortgage etc.

They complained to my boss saying that I had been too blunt with them. Needless to say the complain was never upheld.

What do they expect? Do people want me to be honest or diplomatic? Tell it as it is, that's my motto and apart from this one time it has bever done me wrong.

Andy

lynzpower · 22 March 2006 at 12:47PM

There is definatley a problem in the inherent system as i understand it.

If you get an AIP then you have 3 months in which to find the property you want
(not always enough time!)
If you dont take your AIP then you will have impacts on your credit rating
If you dont have a AIP then tyou shouldnt be looking.

All seems a bit chicken & egg to me. Have I got this righT?

distilled · 22 March 2006 at 12:58PM

Andy, is it not true that a mortgage agreed in priciple isn't worth the paper it's printed on?

Surely references are only taken up once a firm mortgage application is submitted.

madfrenchgirl · 22 March 2006 at 12:58PM

Andy, that really got me laughing!!!

OMG i just cant believe their... lack of ... realism?

MORPH3US · 22 March 2006 at 1:25PM

Althought I agree with the OP that it can be quite annoying wasting time on showing people like that around, I think it is more naievity than anything else. The are no worse than people that go for a look around houses just to have a nosey with no intention of buying.

BTW, I am a FTB and the very first thing we did was get an AIP although as people have said, I could get an AIP for £10,000,000 if I told the right story to the broker, they check nothing to give you one.

Just put it down to the couples inexperience, we were all there once, its not worth getting worked up over.

Good luck selling the house!

M

AndrewSmith · 22 March 2006 at 1:45PM

Hi,

Regarding the AIP DIP etc:

It's validity will depend on a number of things, the most important being the honesty of the client. If he goves rubbish information then the AIP DIP will be meaningless.

I personally, unless the case is self certify, always check incomes by obtaining copies of pay statements etc before I will submit and AIP. Saves wasting my time and theirs.

It also depends on the lender being approached. Some will credit check and credit score at AIP stage, some will simply credit check (sometimes leaving no footprint), others will simply go on the information on the sheet.

I also have the facility to carry out credit checks for clients and, if approaching a lender who does not credit check at AIP, will offer this to the client so we know what we are up against from the start. The very basic search I do will show adverse credit history such as CCJ's etc and leave no detrimental footprint on the clients file.

It also depends on how thorough the broker concerned is and whether he is a 'pile em high sell em cheap' merchant, or someone who works outside of sales targets etc and can afford the time to work properly on each case.

An AIP is valid in most cases for 3 months however they are very easy to re-new.

@ distilled, When I used to finacially qualify and broker mortgages for Gleeson homes we would always get an AIP with a lender who actually credit checks the case before we would allow the client to reserve the plot, or carry out a credit check for the client. Also I would verify income via payslips p60 and ID at this stage. Saves time and money all round. Used to work really well actually, except the phone calls at 3.30pm on a sunday afternoon right in the middle of the Grand Prix :rofl:

Hope this helps

Andy

distilled · 22 March 2006 at 1:52PM

Cheers mate. We need to talk!

Old_No.7 · 22 March 2006 at 2:56PM

From a FTB perspective: I contacted broker London & County a week ago about this and he advised against it! Said that by the time you find a place there might be other deals on the market you want to go with. So please don't blame it on the FTBs: they might have just been following advice from the professionals. He did give us an indication of how much we can borrow, but didn't ask for any proof of income etc. Said to call back when we found a property...

Frustrated by unprepared FTB

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