Got Mortgage in Principle - How likely is Actual Offer?

macgirl

We secured an MIP from Natwest last month and have just had an offer accepted (under the amount we originally requested to borrow).

Tomorrow I am going to make a full application. I currently have a mortgage with them and have done for 9 years with no defaults.

My OH will be taking out the new mortgage with me - he has no debts, though is self-employed, with 3 years audited accounts. His business went Ltd a little over a year ago.

I can't see there being a problem with the valuation, but am now on pins as to whether they will give us an actual offer.

How likely is it after an MIP that we would be turned down?

Thanks in advance

CloudCuckooLand

xyellowx

why not get the full application in first before putting the offer in?

macgirl

Why would I proceed with a full application and pay for a valuation on a property where our offer had not been accepted?
Don't get that really...

Anyway, we have made the full application this morning and so far all is well, so thanks for the comments

xyellowx

Why would you put a offer in on a property and get it excepted when you have no idea if you can obtain a mortgage most banks do the full application before asking for any fees

look at it from the vendors point of veiw (bet you didnt tell him you had no mortgage in place when you put the offer in?)

grogdog

provided the information you provided on the aip can be backed up then there shouldnt be a problem, you are doing it the right way get your aip then get your bid accepted then do the application.

macgirl

xyellowx wrote: »

Why would you put a offer in on a property and get it excepted when you have no idea if you can obtain a mortgage most banks do the full application before asking for any fees

look at it from the vendors point of veiw (bet you didnt tell him you had no mortgage in place when you put the offer in?)

We had an agreement in principle before putting in the offer.

It took the vendors a month to come back to us and decide they would accept our offer. The bank won't lend you the money to buy nothing!

You are correct - they do the full application before any fees are paid, but the purchaser must pay for a valuation upfront, prior to the bank making a full offer and releasing the funds.
Not sure the vendors would have let the surveyor in to value a house that they had not agreed to sell?! Not sure where you are getting your info from.......

Thanks for the reassurance Grogdog :A

xyellowx

my point is if you dont get the mortgage how are you buying the house you have agreed a price on?

my house is up for sale just accepted a offer guess what ?they couldnt get a mortgage, just annoys me that people put offers in for houses before they have a mortgage offer set in stone.

hope you get your mortgage sorry for the rant not your fault

macgirl

I understand your frustration, but the fact is (someone correct me if I'm wrong) but I don't think you can get the offer of loan unless you have had an offer accepted....

We have got an agreement in principle, we didn't just go looking and offering willy-nilly, we made sure our ducks were in a row first.
Today I have received the forms from the bank stating that we passed the affordability and credit score and they are "delighted to offer" us the mortgage "in principle" (and that word is in bold)

They now need to see evidence of our salaries - we have this, bank statements - we have these, and my OH's audited accounts - we have these.
Unfortunately, yesterday the advisor repeatedly said we needed to provide ONE year's audited accounts - today the letter says TWO.

Although he has been SE for a few years, the business has only been Ltd for one, so until I clarify this with the bank it may cause a hold up.

So, to answer your question - if we don't get the mortgage, we won't be able to buy the house That is why I posted the question, because I don't want to offer on a house unless we have a good chance of getting it.

Anyway xyellowx, I hope you get a committed buyer and sell soon

milliebear00001

xyellowx wrote: »

my point is if you dont get the mortgage how are you buying the house you have agreed a price on?

my house is up for sale just accepted a offer guess what ?they couldnt get a mortgage, just annoys me that people put offers in for houses before they have a mortgage offer set in stone.

hope you get your mortgage sorry for the rant not your fault

I'm confused by this also. Before finding a house and having an offer accepted, an AIP is the best a buyer can do. Can't get a fully approved mortgage offer until valuation is done.

jw2003

Make an appointment with the mortgage advisor in your local branch if you can, we're with Natwest too and the whole process was so quick and easy being in there with them. They had the valuation within a couple of days and we had our formal offer a couple of days after that