Please,mortgage opinions needed,FTBs

homehunter

Hi all,

Weird and wonderful story attached to this but I'll cut to the chase for now :rolleyes:

Had offer accepted on a property at £169500. We can put down 20% deposit, perhaps even 22.5% if it were possible.

We are contacting our mortgage adviser tomorrow morning to get a mortgage arranged - we have an AIP but suspect that it may be pulled from under us. We usually see the mortgage adviser just before we make an offer to get the AIP, which we have no probs getting, but we had to move fast on this one. Whether it is a silly move or not, we have put in the offer in the knowledge that we still have to sort the mortgage.

So, with this in mind:

1) Once a mortgage is agreed, is it possible to work out a deal whereby you offer 22.5% deposit, to get lower repayments per month? Not a question I've thought to ask our adviser til now, thought I'd mention it here
2) Anyone know of good deals/initial rates out there? Our adviser is 'whole of market' but surely there are some things even he can't see, I'm sure?

All/any advice welcome, we're a bit nervous as FTBs, despite all the reading and research we've done - this is the real thing!:eek:

Thanks all
PS V happy with price, it is £5k less than asking and £10k less than what is was valued by agent (vendor needed a quick sale)

nervousftb_3

i might be wrong, but i was led to believe by my mortgage advisor that to get access to better rates you needed to increase your deposit by multiples of 5%, ie. 25% would get you a better deal than 20% (i could have been misinformed though!!) so 22.5% wouldn't help in terms of rates. obviously if you do put in more deposit, then you will have less to repay, so of course this will affect your repayments, but it may not be worth trying to overstretch yourself to scrape together the extra 2.5% if you won't benefit from better rates. best to check this with your advisor, and do some sums to see how much the extra deposit would save you in interest over the term of your mortgage to see if it's worth it.

Mrs_Bumble

AIP is purely that agreement in principle if the case doesn't stack up as per the info on submission then bye bye!

Why do you suspect that it will be pulled from under you?

homehunter

Thanks peeps, useful stuff. Even if it didn't reduce the rates, we could easily pull together 22.5% (for example) we just can't quite make that Golden Figure of 25%, much as I would like to. If it simply reduced how much we owe, perhaps giving us slightly less in monthly repayments, but at the same rate, then all the better

Mrs Bumble: I guess because we got the AIP a while ago, when we offered on a house but it was declined and we didn't feel it was worth going higher. I believe the AIP is still in date, but I read so many anecdotes on here, where an AIP has been agreed but days later the product has been pulled and the AIP is not honoured. Because it was a while ago, I guess I assumed that it would no longer be available - but I could be wrong...

Haven't been able to call adviser yet, annoyingly, found a min to pop on here but work is manic. So wish we both had the day off to get this all sorted :mad:
Asked OH to call after lunch!