1st Time Buyers Mortgage Application - Deposit is a gift we don't yet have

RedFraggle

Cool. Always worth checking when it comes to tax. Good luck with the purchase.

looptip

They'll either accept the deposit is gifted or they won't.

Ms_Scarlett_2

Apparently they will - we have an AiP!!! Yay!!! Apparently the delay in our approval was only caused by the term we asked for. We're 30 and applied for a 35 year term. YBS will only consider a term that ends before you're 64, apparently, so we changed our application to a 33 year term and hey presto - AiP!! Thank Christ my boyfriend has a spotless credit history. I'd be sunk without him...

Offer is in with the sellers, now we wait...

saverbuyer

Ms_Scarlett wrote: »

Apparently they will - we have an AiP!!! Yay!!! Apparently the delay in our approval was only caused by the term we asked for. We're 30 and applied for a 35 year term. YBS will only consider a term that ends before you're 64, apparently, so we changed our application to a 33 year term and hey presto - AiP!! Thank Christ my boyfriend has a spotless credit history. I'd be sunk without him...

Offer is in with the sellers, now we wait...

Not to put too much of a dampener on things but just so you know an AIP means exactly nothing. They are given out like candy. You’ll be checked out properly much later in the process. Perhaps after you’ve paid for the survey.

Thrugelmir

Ms_Scarlett wrote: »

so we changed our application to a 33 year term

Worth reviewing this. You may wish to move or start a family at a later date. So you'll be paying far more interest than capital for many many years.

Not withstanding the fact that interest rates longer term will rise.

Ms_Scarlett_2

Thrugelmir wrote: »

Worth reviewing this. You may wish to move or start a family at a later date. So you'll be paying far more interest than capital for many many years.

Not withstanding the fact that interest rates longer term will rise.

Oh god, we're not planning to HAVE it for 33 years!! Just allows us to take advantage of the opening low rate to overpay like mad to get into the capital a bit quicker. We'll restructure later and reduce the term, hopefully with a far lower LTV by then.

Saverbuyer - yes, we know we could still be turned down at application. I was given some very good advice to ask them to process the rest of our application before the valuation, and even if they wouldn't do that we'd only lose about £400 at that stage, so although not great, also not terrible. The mortgage company full survey costs were pretty prohibitive, so we're having that done privately anyway.

Thanks for your comments, both! Our first offer has just been turned down by the seller (11% below asking), so we're sitting on our hands for now anyway.

saverbuyer

Ms_Scarlett wrote: »

Our first offer has just been turned down by the seller (11% below asking), so we're sitting on our hands for now anyway.

Good on you. Only pay what its worth to you. There are plenty more houses out there.

Ms_Scarlett_2

saverbuyer wrote: »

Good on you. Only pay what its worth to you. There are plenty more houses out there.

I actually do really want this one, but it won't hurt to let them stew for a fortnight as we know there isn't much interest in it. We could maybe find a little bit more, but not much, and we're not planning to tell them that any time soon.