mortgage promise

SPOTTEDCUP

went to see mortgage advisor yesterday at bank we currently have mortgage and our bank accounts with. (halifax)

Gave us a mortgage promise for a mortgage. We asked what the next process would be when we had sold our house and was advised to just go back in and he would print it all off and just to sign on the dotted line. We asked if it would need to be approved by anyone else or a underwritter and he said no as we had passed the credit check and criteria.


1. Does this seem normal it seems a bit to easy?

2. 3 year fixed 5%, is this a reasonable rate?

dunstonh

1. Does this seem normal it seems a bit to easy?

Seems fine. They have all your basic info and just needed to update a few things. You are only at the enquiry stage so there is little else they can do.

A mortgage promise is a bit like saying if you were applying today and what you have told us is true, then there is no reason why we would not lend to you. The only issues are where you havent told them quite the truth (forgot a loan or over egged your income) or their lending criteria changes between now and then.

2. 3 year fixed 5%, is this a reasonable rate?

I will leave that for the mortgage advisers to answer.

opinions4u

1. If your existing mortgage is well conducted and there's at least 25% equity then it should be fairly straight forward.

2. How much are you borrowing? Do you qualify for their 4.39% fixed for 3 years rate as "Halifax Rewards Current Account Customers"?

It can, in some cases, be better to pay a bigger fee for a lower rate.

If you have an Ultimate Reward Current Account, there's a £150 incentive for home movers with Halifax.

£150 bonus payment when you take out a First Time Buyer or Home Mover Mortgage

This will cover the £12.50 monthly fee and the other benefits might save you a few quid. Diarise for 12 months down the line with a view to cancelling though!

You can compare competitor mortgages at sites like www.moneysupermarket.com/mortgages.

SPOTTEDCUP

opinions4u

we have 35% equity in our house looking to borrow 190k-200k depending on what price i can get acepted
the 5% was based on a 17-18% deposit we have

the 4.39% is that based on 20-25% deposit?

opinions4u

SPOTTEDCUP wrote: »

opinions4u

we have 35% equity in our house looking to borrow 190k-200k depending on what price i can get acepted
the 5% was based on a 17-18% deposit we have

the 4.39% is that based on 20-25% deposit?

Yes. 5% sounds more reasonable above 75% LTV.

MORPH3US

Why has the Halifax bod done a credit check on the OP if its only a "mortgage promise" at this stage?!?

I didn't think they actually did the credit check until you were actually ready to take the mortgage.... hence the "based on what you've told us, we would accept you" bit.

Let_Us_See

It is a straightforward Decision in Principle and will be subject to an acceptable survey. Based on a LTV of up to 85% the 5% fixed rate is OK. What arrangement fee is the Halifax charging you?