Mortgage in principle

Chris2685

Our IFA told us that we had a 'mortgage in principle' about a month ago, and the house buying process is taking what seems like forever (going through MyChoice homebuy is not as quick as they say!!). Is it likely that any mortgage in principle will still be given, or are mortgage lenders getting even tighter now?

Trying to get a mortgage of £110k over 25 years with a deposit of £15k, for a £210k property (the remainder of which is funded by the MyChoice Homebuy equity loan).

Chris2685

No one got any thoughts?

Conrad

AIP should be ok but the road to getting any kind of shared equity property can be a bumpy one.

rich1day

Hey, not sure if this will help but it is your IFA's job to ensure you are informed of everything - even tho independent they make quite a killing for arranging your mortgage so make them earn their money!!!

Usually a Mortgage in Principle is valid for 3 months though not set in stone until you have a formal mortgage offer - I heard of a bank changing their lending policy and if its only an agreement in principle you don't have a leg to stand on. If you want to secure the rate etc you need to provide them with your I.D bankstatements and 3 months payslips to get a formal mortgage offer, these are usually valid for 6-12months, though like I said get your IFA to clarify - depends on which lender you have gone with. GOOD LUCK!!!

Chris2685

OK thanks, I already provided all of these documents, and as far as I understand it he used those to get us the mortgage agreed in principle with Abbey I think, although we are now hoping to apply with Nationwide.

As a first time buyer though, I thought for a while that we had actually had a mortgage agreed at a certain level for definite, but it seems that wasn't the case. I am still quite optimistic though, it is just a shame all this takes so long!