Mortgage in principle before viewing?

matt1987

Hi all,

I know I have made a few threads now with certain mortgage questions, but there is so much to get my head round.

What I would like to know is, do you have to have a mortgage in principle before you go and view a house and also make an offer on a property?

Also, to make an offer, do you have to appoint a solicitor to do this on your behalf?

I have been speaking to Santander today whose offers seem to be very good!

I would like to borrow £88000 and have a £17000 deposit which would enable me to purchase a house worth £105000. On a 4 year fixed rate, Santander can offer me payments of £522 per month over a 30 year period.
This price includes a booking fee of £495 being added to the mortgage, a free valuation and £350 cashback on completion.

They said the was it works is that I would have to make an offer on a property first, then ring them and apply for the mortgage after I have made my offer. They would then send their surveyor around to complete their valuation and then be able to release funds once happy.

I did ask if I needed a mortgage in principle, and they said no just view and make an offer. They said I wouldnt have any issues gaining a mortgage with them, as I have no adverse credit history.

Does this sound right? It sounds too easy?

Matt

luckyfool

They can't be bothered doing the work in giving you an approval in principle. You can do it the way you say, but the estate agent is likely to be sceptical without an approval in principle in place and will be unlikely to recommend any offer you make to the vendor without proof that you can actually get a mortgage. i.e. They will try to get you to sit down with their in house broker to get an approval in principle with them.

matt1987

luckyfool wrote: »

They can't be bothered doing the work in giving you an approval in principle. You can do it the way you say, but the estate agent is likely to be sceptical without an approval in principle in place and will be unlikely to recommend any offer you make to the vendor without proof that you can actually get a mortgage. i.e. They will try to get you to sit down with their in house broker to get an approval in principle with them.

Thanks for that, so Its not advisable to go down this route then? They said that getting mortgages in principle's can affect your scoring if you don't go ahead with them?

I like the look of a house, I havent viewed it yet because I thought I wouldnt get taken seriously if I didnt have a mortgage in principle, especially as I want to go in with a cheeky offer!!

Beast

We viewed a whole bunch of houses, found the one we liked, went home and arranged the agreement in principle and slept on the idea then made an offer.

eschaton

Different ways of doing things.

In current house....

Made offer

Went and put own/then house up for sale

Went and applied for a mortgage

milliebear00001

I spoke to a broker to get an idea of what amount I could lend, then viewed, then offered with the caveat the property was to come off the market immediately, offer accepted, applied for mortgage via broker.

My broker advised that I shouldn't bother with an AIP as these leave a 'search' on your file, so better to apply once you know the exact amounts you're dealing with. In my experience, Estate Agents don't like it, will pressure you into seeing their adviser - but tough. It's a buyer's market in most parts of the country so they can take my offer on my terms.

Senior_Paper_Monitor

Apologies for posting the following for a further time.

Where we have clients who feel they are being pressurised by estate agents we provide them a copy of the following (nothing to stop you doing the same) .......

We regularly have clients advise us that the estate agents for the property are ‘pressurising’ that “unless you use their broker you may not be able to get the property”- we have no problem with you seeing anyone you wish, BUT it is not legal to ‘make you do so’, nor to indicate that it will ‘impact on your ability to buy the property ifyou do not’.

Additionally, extra ‘credit checks’ / ‘Decisions in Principal’ may adversely affect your credit rating:

You may find the following extract useful:

Extract from The Property Ombudsman Code of Practice for Residential Sales (as of 22.02.10)

· as recognized by the National Association of Estate Agents (NAEA)

· as approved by the Office of Fair Trading under its Consumer Codes and Approval Scheme


6. Submission of Offers

6a By law, you must tell sellers as soon as it is reasonably possible about all offers that you receive at any time until contracts have been exchanged (in Scotland, missives have been concluded) unless the offer is an amount or type which the seller has specifically instructed you, in writing, not to pass on. You must confirm each offer in writing to the seller, and to the buyer who made it, within two working days.

6b You must keep written or computerised record of all offers your receive – including the date and time of such offers – and the seller’s response. Such records should be made promptly.

Discrimination

6c By law you must not discriminate, or threaten to discriminate, against a prospective buyer of the seller’s property because that person declines to accept that you will (directly or indirectly) provide services to them. Discrimination includes – but is not limited to – the following:

· Failing to tell the seller of an offer to buy the property.

· Telling the seller of an offer less quickly than other offers you have received.

· Misrepresenting the nature of the offer or that of rival offers.

· Giving details of properties for sale first to those who have indicated they are prepared to let you provide services to them.

· Making it a condition that the person wanting to buy the property must use any other service provided by you or anyone else.

matt1987

Thanks for all your replies! I was pretty much told that I would be eligible for the santander product as long as I wasnt telling any porkies about my credit history, which I wasnt!!!

There is a house I like that's up for £109,000, what would be an acceptable amount to offer in this day and age?

Matt

pardal51

matt1987 wrote: »

Thanks for all your replies! I was pretty much told that I would be eligible for the santander product as long as I wasnt telling any porkies about my credit history, which I wasnt!!!

There is a house I like that's up for £109,000, what would be an acceptable amount to offer in this day and age?

Matt

Hi Matt, I am also FTB and doing the full exercise.

1) How long has the property been on the market? Propertybee installed on Firefox browser
2) What is the current vendor's situation, i.e., looking for quick sale, chain, etc
3) Check for sold prices in the same post code using the websites: mouseprice.co.uk zoopla.co.uk nethouseprices.com
4) Use your FTB status to your advantage, i.e., no chain, able to complete quickly, etc
5) Take your time and deal rationally rather than emotionally
6) Negotiate

This is my idea anyway, but there are lots of more experienced MSEs who can help.

matt1987

pardal51 wrote: »

Hi Matt, I am also FTB and doing the full exercise.

1) How long has the property been on the market? Propertybee installed on Firefox browser
2) What is the current vendor's situation, i.e., looking for quick sale, chain, etc
3) Check for sold prices in the same post code using the websites: mouseprice.co.uk zoopla.co.uk nethouseprices.com
4) Use your FTB status to your advantage, i.e., no chain, able to complete quickly, etc
5) Take your time and deal rationally rather than emotionally
6) Negotiate

This is my idea anyway, but there are lots of more experienced MSEs who can help.

Thanks for that. Well to my knowledge this said house has been up for about 5 months now and it doesnt have any chain. Prices on those websites you mentioned seem to be around the £100,000 - £120,000 mark.

I have noticed that the property doesnt have a legal driveway. Basically it had a driveway but there is no dropped kerb and there is a tree in the way. I have seen a car parked on it, but they must go up their neighbours dropped kerb. Surely I could use this as a bargaining tool?

Edit - Anyone had any experience with Norwich and Peterborough BS? Their rates seem really cheap for an 85% LTV!

matt1987

Well I now have my mortgage in principle with Yorkshire Building Society, and have found a property we like!!

Were going for a 2nd viewing tomorrow, and then after that the fun shall commence with offers!!!

Property is up at 117,500, and thinking of offering 100k as a start, what do you reckon?