When do apply for mortgage?

Mummytobe

Sorry to ask this kinda simple question but when is the best time to apply for a mortgage? I.e. before you find a house that you like and have an offer accepted on OR once you have found a house and had an offer accepted on it?

Please help, im a first time buyer and need all the help and advice i can.

P.S. After searching for a mortgage with a 95 LTV i have found one with Ipswich BS and wondered if anyone has any dealings with them or this product and could give any feedback....

koexelek

Best to get an agreement in principle on a mortgage before you put your offer in... then formally apply when you have had an offer accepted.

Ipswich Building Society are a sound lender.

Mummytobe

koexelek wrote: »

Best to get an agreement in principle on a mortgage before you put your offer in... then formally apply when you have had an offer accepted.

Ipswich Building Society are a sound lender.

Thank you thats brilliant news i will get applying then! Also what happens if the amount you apply for is then reduced when the offer you put in is less....

koexelek

Mummytobe wrote: »

Thank you thats brilliant news i will get applying then! Also what happens if the amount you apply for is then reduced when the offer you put in is less....

Usually, an agreement in principle will tell you the maximum you can borrow from that lender.
You know then that you have to keep within that figure.
Obviously, if you need to borrow less, there is not a problem.

mluton

We had a mortgage in principle on 2 occasions and on finding the house/s, the mortgages were withdrawn from the market.

This was at the start of the Credit Crunch though and things may have changed.

herbiesjp

Are you looking at their SVR deal?

If so:

Our Standard Variable Rate mortgage with a LTV of 95% is only available to existing members. Existing members are defined as those who have a mortgage with the Society or anyone who has had a savings account with the Society for over 6 months at the time of opening this account.

You would need to fit the above criteria taken from their site

dimbo61

Open a saving account with Ipswich building society today !!

Mummytobe

herbiesjp wrote: »

Are you looking at their SVR deal?

If so:



You would need to fit the above criteria taken from their site

I found the mortgage by using Mform where i put all my details in and they suggested the ipswich bs and abbey. Ipswich has much cheaper repayments per month. Do you think they would suggest it if you have to be a member of the society for 6 months even tho they have put it on their website?

herbiesjp

That is the problem with those sites

They do not give you the lending criteria

So unless you have been a member I doubt they will give you the mortgage

Mummytobe

herbiesjp wrote: »

That is the problem with those sites

They do not give you the lending criteria

So unless you have been a member I doubt they will give you the mortgage

I can't believe they have suggested it even tho i am not a member.

Annoyed annoyed annoyed.

herbiesjp

You should not really rely on these sites though.

They are a good starting point, to get ideas, however you then need to do the research to see whether you can actually get the mortgage.

Thats where brokers come into their own, as they will know very quickly what you can and cannot get.