Mortgage in principle before viewing?

Doshwaster

Rainmaker_uk wrote: »

I was recently told by an estate agent that they would not let us view a property if we did not go in to their offices first and show them a decision in principle... Is this legal?

You have no legal right to view any property on the market. Some properties attract a lot of time-wasters so it's up to the EA to decide who is a serious buyer. A house may be for sale but it is still private property so the seller has the right to decide who should be shown around. Some people are just nosey and like poking around other people's homes at the weekend.

There's a mansion for sale for £5m a few miles from here - should I be able to demand a guided tour even though I haven't a hope of affording it?

Senior_Paper_Monitor

I agree fully Mr Waster BUT as you say "the seller has the right to decide" and while he invests that decision to some extent with his appointed agent he may be as unimpressed as I and Mr Rainmaker are with the basis on which that invested authority is being applied. It remains the seller's decision is he/she wishes to respond to my suggested letter.

matt1987

Well we had our offer of £102k turned down, apparently the vendor said they wanted 115k nothing under. I did say to the EA I can give 105k max but that isnt good enough. I think the seller is very unrealistic in today's market hoping to get 2.5k less than asking - especially as the house a few doors down sold for 117k, this was a 3 bedroom semi, along with a conservatory and bigger driveway!! The house I offered was a 2 bedroomed terraced, no conservatory!

Looking at either a repossessed house now, or we have just found another house thats been on the market since Dec 2009, problem is its up for £119k.Is there any point in viewing this or am I just wasting my time and the vendors time?

Percy1983

Just keep trying, unfortunately there is many unrealistic sellers right now, my dad things his house is worth 30k more than it is but he isn't selling right now so I will leave him to it.

In may local area a few houses have dropped 15-20k recently as the realisation must have kicked in with some of them, just be patient and I am sure something will turn up.

matt1987

Thanks Percy, the seller rejected my offer because " they would lose money on it ". Well.... unfortunately, if you want to sell now, your going to lose money!

Going to see a house at 6pm thats up for 120k. Vendors looking for a very quick sale as they are emigrating, and they have already had a hold up with a sale falling through... they are now out of the country and need to sell asap. Got a few more to view aswell, they are all up for 120k though, so lets wait and see!

matt1987

UPDATE!!!!

Got an offer accepted of £110,000 for a 2 bed terraced house that was built about 15 years ago. Was asking £120,000 for it!

Been to my mortgage provider today - done all the paperwork, proof of ID etc, etc. All seems fine! Solicitor is on the case, home insurance has been signed up ( it was free with the mortgage ) and everything seems to good to be true!!!!

Its such an exciting time! The only fees we are having to pay are the Land Registry Fee's, search fee's, bankruptcy searches and Telegraphic transfer! Everything else is on the house with my mortgage provider! I also get £500 cashback on completion!

Lets hope everything goes ok!!!

Percy1983

Fantastic news, glad you have found something you are happy with.

Hope it all goes without a hicup now.

sophievenusdoom

matt1987 wrote: »

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

Your post made sense until it came to the part where they said you don't need an agreement in principal. This in itself is rather odd, as you could made an offer on a house, barter, eventually have an offer accepted, then it could all go Pete Tong when you apply. Everything else sounds fine

sophievenusdoom

matt1987 wrote: »

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?

Well done you - you are well on your way to being homeowners now .

My parents recently moved into a new house that was on the market for £280k. They went in with what they thought was a cheeky offer of £250k - and it was accepted!! We started off with an offer of £9k less which was declined, then £7k less which was also declined, then finally the offer of £5k less was accepted so you never know!!

sophievenusdoom

matt1987 wrote: »

Well we had our offer of £102k turned down, apparently the vendor said they wanted 115k nothing under. I did say to the EA I can give 105k max but that isnt good enough. I think the seller is very unrealistic in today's market hoping to get 2.5k less than asking - especially as the house a few doors down sold for 117k, this was a 3 bedroom semi, along with a conservatory and bigger driveway!! The house I offered was a 2 bedroomed terraced, no conservatory!

Looking at either a repossessed house now, or we have just found another house thats been on the market since Dec 2009, problem is its up for £119k.Is there any point in viewing this or am I just wasting my time and the vendors time?

I would say always go and see them, just because one vendor has turned your offer down, doesn't mean all of them will, and it could be the house of your dreams!