Getting a mortgage in principle (again!)

VKay

Hi,

We had a mortgage in principle set up in Jan 09 as we were in the process of buying. Sale didn't work out. Mortgage offer with Abbey expired after 30 days.

We are continuing to househunt. Our local EA suggested we 'look at mortgage options again'. I don't see the point in getting another mortgage in place ( along with all the credit checks again on our credit files) until we see a house we want. Surely it'll run out again and we'll just have to keep doing it.

What is the point of us doing this when we haven't offered on a property? Any advice? Should we line up a mortgage? Can we 'save' or 'freeze' a mortgage in principla for several months?
Thanks.

Trying_to_be_good

VKay wrote: »

What is the point of us doing this when we haven't offered on a property? Any advice? Should we line up a mortgage? Can we 'save' or 'freeze' a mortgage in principla for several months?
Thanks.

Nothing really counts for much until you get to a mortgage offer, and that's only given against a particular property.

So long as you're confident you will be able to get a mortgage (i.e. good credit records, good salary coverage etc) I wouldn't worry - I suspect the EA is trying to line the pockets of his advisor...

VKay

Yes we have a good deposit and plan to borrow less than 2x our joint salary so feel getting a mortgage SHOULD be ok!!

You may be right about the advisor...

Can you 'freeze' mortgages in principle for a few months?

Mrs_Bumble

I agree with the above.

If you have no credit history problems, no issues surrounding your type of employment (i.e contract, temporary etc) no high unsecured borrowing, borrowing less that 2 x joint salary I wouldn't bother with the AIP all it will do is credit search (soft or otherwise) and tell you approximately what you can borrow, it isn't definite as the eventual offer is based on the property.

VKay

Mrs Bumble,

There is one thing... I missed a credit card payment for the first time in 14 years this month! I paid onlie for the first time and i filled out the online form wrong! My bank have record of my attempted payment 9 but didn't bother to tell me that it hadn't worked!). My cr card have waived the late payment fee and interst as i am a 'good customer'. Account now up to date but showing on my credit file as missed 1 payment. I have put a notice of correction on my file.

We have a £50k deposit saved, we earn £57k together in steady jobs and want to borrow £115k max.

Would you worry about 1 missed payment?

Cheers!

Mrs_Bumble

One missed payment, notice of correction, no late charge I wouldn't worry about it. Overall profile is very low risk, do you pay off credit cards in full each month? When you have found the property you want and are submitting the application just make sure whoever is submitting the application is aware and that it was an error and the bank waived the charge etc.

Good luck house hunting!

VKay

Thanks- that's helpful. i do pay my credit card in full every month and on time ( except this month). I'll let our adviser know about the error when it comes to it.

Thanks Mrs B !