Mortgage, AIP, credit search: advice and thoughts

pardal51

Hi all,

I am in need of a bit of advice from the experts...

Basically I am "thinking" of buy a house (FTB), even though I am awaiting for the emergency budget this week, etc...

1 ) Do I really need to find a financial advisor/broker or is it just a matter of searching and researching online and doing your maths - I am somewhat financial savvy?

2) To get the AIP (agreement in principle) do I need to narrow down, choose the product and apply for the mortgage, even though I still have not found the house yet, incurring in a credit search and having probably a 3-month agreement in hand?

3) Both mine and my OH's files are clean, no debts, no credit searches showing on both Experian and Equifax reports. I am considering applying for a First Direct bank account, i.e., generating a search on our files. Will this search count against when applying for the mortgage or Don't need to worry about 1 recent search?

4) I have been baking with LTSB for 9 years now, does it help when applying for a mortgage or having just opened bank account is more or less the same?

5) I am looking for a £250K home, having a deposit of around £85K + 6-month salary put aside just in case, i.e., LTV 66%. Is it advisable to put as much money as possible as deposit in this current financial environment?

Comments and advice are much appreciated.

jockosjungle

1. I manage without a broker, you can do it all yourself and in many cases the best rates are only available direct. I went with the Post Office who do not deal with brokers, they'll tell you about the secret deals only they can get and how they will liase with the mortgage company on your behalf. Chances are you can get a better deal going direct to a lender and you can just as easily pick up a phone to the bank (better in fact as you know the answers) and all you're doing is chasing a middleman who then chases the bank.

2. Do the legwork first, find a likely mortgage you want (check with own bank) and get an AIP from them, you can show it to EA but it just shows you could get a mortgage, not that you have to use one. I used the PO in the end, but have got an AIP from HSBC

3. Yes it will count depending on what bank it is, is it a request for credit? Will you get an overdraft, if its just an ISA they probably won't bother or do a light search, only when you request credit does a full search go in. Any reason you need a FD account? I'd hold off just in case

4. Not sure it massively matters anymore, I'd talk to your own bank first though and get an AIP from them. They're more happy to deal with people wasting their time (wife and I bothered HSBC to find what we can borrow and didn't have a deposit saved) if its your own bank.

5. I would, it'll make the loan safer in the banks eyes and make less interest to be paid, also the higher the LTV the better the deals, if you can stretch to a 60% LTV the best deals are available

R

pardal51

jockosjungle wrote: »

2. Do the legwork first, find a likely mortgage you want (check with own bank) and get an AIP from them, you can show it to EA but it just shows you could get a mortgage, not that you have to use one. I used the PO in the end, but have got an AIP from HSBC

Did HSBC do a credit search on your name(s)? I can probably book an appointment with LTSB to discuss it, but don't want to have a wasted search on my file.

jockosjungle wrote: »

3. Yes it will count depending on what bank it is, is it a request for credit? Will you get an overdraft, if its just an ISA they probably won't bother or do a light search, only when you request credit does a full search go in. Any reason you need a FD account? I'd hold off just in case
R

They seem to offer a good deal on offset to existing customers, hence my idea of applying for their 1st Direct current account which will leave a serach on my file

jockosjungle

I'd check what existing customer meant if I were you, could be six months before they will have you.

Yes HSBC did a credit search on my name, not a full one though, not srue which one they did but he did ask if we knew if we'd be rejected before he did it. In a way it is a good idea to get one done, you'll have some idea whether said lender would give you a mortgage

R