We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Agreement in principle
northern_at_heart
Posts: 165 Forumite
We’re just at the very early stages of buying our first flat and as I understand it, it’s best to get an agreement in principle before seriously considering making an offer.
So our independent mortgage advisor has found us a couple of good deals. The one with the lowest rate though has a stricter salary-multiple limit and will only lend us enough for a £210K house which may be enough, but we may need to borrow more than this if the house we find is more expensive. The second lowest rate (which is still affordable for us) is from a different lender who would lend us enough for a £250K house.
As the flats we’re looking at are around this amount and at this stage I’m not sure what we will end up deciding on, can we request AiPs from two different lenders? Or is this not allowed? Should we fill in the forms allowing for the most expensive scenario, and assume if lender A will lend us enough for a £250K flat then we can sort out the cheaper mortgage from lender B later on if we decide we’ll be happy with a £210K flat?
Gah, this is so confusing! And it’s only going to get worse, isn’t it? J
So our independent mortgage advisor has found us a couple of good deals. The one with the lowest rate though has a stricter salary-multiple limit and will only lend us enough for a £210K house which may be enough, but we may need to borrow more than this if the house we find is more expensive. The second lowest rate (which is still affordable for us) is from a different lender who would lend us enough for a £250K house.
As the flats we’re looking at are around this amount and at this stage I’m not sure what we will end up deciding on, can we request AiPs from two different lenders? Or is this not allowed? Should we fill in the forms allowing for the most expensive scenario, and assume if lender A will lend us enough for a £250K flat then we can sort out the cheaper mortgage from lender B later on if we decide we’ll be happy with a £210K flat?
Gah, this is so confusing! And it’s only going to get worse, isn’t it? J
0
Comments
-
Get your AIP for the most you can get (afford). Work out who is offering the best deal on the amount you want to borrow when you know how much you want to borrow. Don't get lots of AIPs because each credit check leaves fingerprints on your credit rating which can be detrimental later.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.4K Banking & Borrowing
- 253.3K Reduce Debt & Boost Income
- 453.8K Spending & Discounts
- 244.4K Work, Benefits & Business
- 599.7K Mortgages, Homes & Bills
- 177.2K Life & Family
- 258K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards