More than one agreement in principle?

Ste.._2

Hello all,

I posted recently how I had been approved on a 95% LTV mortgage at Clydesdale, and after spending some time doing sums and making inquiries at the Bank of Mum and Dad, it's becoming obvious that I could probably get a 10% deposit together over a couple of months.

We've all heard about the effects of making multiple applications on your credit score, I'm just wondering whether it would be advisable to be making inquiries elsewhere for 90% products?

Obviously a 10% deposit opens the market up enormously, and Clydesdale have pretty bad 10% rates, so I'd want to look elsewhere.

Thanks!

Ste.._2

Also, is it possible to make a full mortgage application on a property without having the entire deposit in place? At what stage in the process does the lender take the deposit from you.

e.g. bank balance is showing 15,000, deposit required is 20,000. Would they normally accept the buyers assurances that the remainder of the deposit will be in place in time?

betmunch

Why not leave it until you have found the house, you have more than you need agreed in principal so you are in a position to buy, thats all that matters, where you ultimately get your cash from is your business.

Some lenders will request proof of deposit before producing the mortgage offer, some wont. In the end you pay it to the Solicitor, just before exchange so that should be about 2 months after you have an offer accepted

Ste.._2

Thanks for that, I've found a place and made an offer.

So I guess just allow the house buying process to occur as usual then and apply for a 90% LTV product when the time comes to make the full mortgage application?

These things take months to play out, so "exchange" could be 6 months away I suppose which would give me plenty of time to get the remainder of the deposit together

Senior_Paper_Monitor

I don't think you'll find many vendors willing to wait six months for exchange !!


But to answer your original question no problem with a couple or even three mortgage credit applications over a few months (unless you are hammering it elsewhere).

A word of warning - I seem to recall that Clydesdale's initial credit checking is very light/if not non-existant at AIP stage - full credit checking runs at a later stage

Ste.._2

Hi There

Thanks for the info, what I meant was the seller has only just started looking for a place himself, so the whole process could take some time.

I subscribe to creditexpert and can see the Clydesdale entry, supposedly all FTB applications are giving particular scrutiny these days including a credit check, paperwork check, send it all to the underwriters etc which my application was subject to.

The entry on my credit report says it's for a mortgage, and how much it's for. In fact there are two entries, one mortgage application and one anti-fraud check. I assume when the banks advisor said he had done a "full application" for me, what that meant was a full check as I had to send bank statements and it all went to their underwriters.

Still not sure what to do then really, I guess I should just wait and see whether the offer is accepted, and then make the full mortgage application as late as possible.

If the seller accepts my offer, but he has nowhere to go yet, what happens next? how far do we go with the sale of his house whilst not actually being able to exchange?

I was all set up for the offer I have and then the Bank of Mum and Dad suddenly paid out meaning another 5% is not that far away, and it would mean a couple of hundred quid a month less mortgage payment. Too much to easily dismiss, maybe I'll have to miss out on this house while I complete the full 10% deposit.