Hmm is this FSA trying to pull wool over my eyes re: mortgage??

fimonkey

Thanks again, and point taken about the Nationwide not being a bank... but I have no idea what the significance is between Banks and building societies when it comes to mortgages.

I also bank with Barclays so they're an option too.

The more I look nito this the more I realise what a weird world it is! If I want to buy a car, I'd save up some money and get a loan for the rest, at the best APR, THEN go and look at cars in my price range and buy the one I liked.

However it looks like to buy a house you need to find the house you like first, THEN go and source mortgage deals? What if other's who also look at the house like it and can get in there with their money before me? As a seller I'd accept a buyer who could complete more quickly than one who couldn't (and doesn't having everything in place mean I'm in a better position to negotiate price etc)?

dunstonh

The more I look nito this the more I realise what a weird world it is! If I want to buy a car, I'd save up some money and get a loan for the rest, at the best APR, THEN go and look at cars in my price range and buy the one I liked.

However it looks like to buy a house you need to find the house you like first, THEN go and source mortgage deals?

A personal loan is unsecured so you can get the cash and then go buy what you want. A mortgage is secured on the property so you need to know what you are buying and how much it is going to cost etc before you apply.

What if other's who also look at the house like it and can get in there with their money before me? As a seller I'd accept a buyer who could complete more quickly than one who couldn't (and doesn't having everything in place mean I'm in a better position to negotiate price etc)?

It happens. Cash buyers are often more attractive as are those with no chain. A vendor may accept a couple of thousand less from a cash buyer to get a quick sale. Especially if they have a bridging loan which is costing them each month or need to be in their new property by a set date (new build for example).

fimonkey

So, ....
1. I have to get an AIP (which is where the bank/building society tells me how much I can borrow right)? DO I get a number of AIP's? Or by this stage have I decided which mortgage lender I'm going to go with and only have the one?
2.THEN look for a property,
3.THEN go back and get a mortgage (how long does that process take)?
4.THEN go back to the vendors with an offer?

Long winded way or what? - However if a mortgage advisor won't seriously search for a good offer for me UNTIL I've found a property, then this conflicts with 1 and 2 and means they should be the other way round?

Out of interest, is there any difference between obtaining a mortgage from a bank OR building society please?

many thanks

Rick62

Stages are:

Find a good broker who gives you confidence.

With your broker decide on the preferred lender and get an AIP from this lender.

Find a property and make an offer based on the AIP amount.

Once offer agreed check if any better mortgage deals available and proceed to full application (the broker will have most your information by this stage).

Technically a building society is a 'mutual' organisation, owned by the members and a bank is a profit company. In reality it makes little difference, although a few smaller building societies still retain more of a member focused approach.