Mortgage in principle before viewing?

sophievenusdoom

matt1987 wrote: »

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!!!

Well done you!! (sorry, I have been replying as I go LOL!) so a little over-budget, but not too bad!!:T

matt1987

sophievenusdoom wrote: »

Well done you!! (sorry, I have been replying as I go LOL!) so a little over-budget, but not too bad!!:T

Well I wouldnt even say it was over budget to be honest. I asked to borrow 88k, because I though the BS wouldnt give me any more. When I rang and asked, they said we would lend you £104,000 plus your £17k deposit, so we upped it to £93,500 borrowing and £16,500 deposit.

Percy1983

My bank are offering me £134k with my current debts. As it is houses we are looking at are around £90k. Its nice to know that I can buy 'under budget'. Yet I look at the mortgage amounts at the top end and think I can't afford it yet the bank think I can.

Maybe its the fact I am thinking about having a nice buffer for potential interest rates rises.

matt1987

Surveyor has been requested by YBS now, and will be attending the property on Wednesday. Does this mean that my mortgage has more or less been accepted? My mortgage provider is paying for the surveyor!

Percy1983

I would say so, unless the surveyor finds a problem it all go.

Ditto

What kind of survey are you having done - valuation, home buyers or full?

I personally wouldn't just go with a valuation, as the surveyor could look at previous house prices in that road and then do a drive-by and say its ok. A valuation survey just confirms to the mortgage provider that they could get their money back, less your deposit, if it was repossessed.

I went for a home buyers survey which was £250 more expensive but give me more details about the house. If it picks up anything significant you can use that as a bargaining tool.

A full survey costs about a £1000. I wouldn't go for that unless the house is really old, or in a bad way.

Just because you managed to get a few thousand pound off the asking price does not mean you have managed to bag a bargain, it might have been overpriced in the beginning. I assume you did a lot of research of house prices in that area etc.

matt1987

I just had the standard valuation - didnt think there was any need for the homebuyers as the house has only been up about 15 years.

The house was up for £120,000 but we got it for £110,000. The current owner bought the house back in 2005 for £115,000, and there is one a few doors down that sold for £68,000 for a 50% share.

I think we have paid just below the average house price for that area - especially taking into account that the house isnt ex LA.

matt1987

Just a bit of an update on my situation!

The valuation was done start of September without any issues!! I have now paid the Solicitors to start the searches, and all the solicitors are waiting on is my mortgage offer, which according to YBS will be done this week!!!

So, how long do you guys reckon I have until the big exchange now? The vendors are not in the country now, and the property is vacant. We have nothing holding us back so hopefully its not going to be too long now!