mortgage agreed in principle

morgan78_2

ok I have an expanding family and really need to move, 4 and half years ago lost my job and entered a dmp had 6 defaults registered between me and my wife, totalling 30 k paid 4 off left with £12000 and £2000, earn £43000 and wife £8000 no other debts, never missed mortgage payments, current house worth £125000 and owe £58000,

phoned London & county brokers gave him all my details and he has come back to me saying santander have scored me very highly and would be prepared to offer me just unde £200,000.00,

when he phoned I was gobsmacked and couldnt believe because thought would have no chance of getting a mortgage but he has emailed me an agreement in principle, I still cant getmy head round it,

I dont want to get my familys hopes up and start looking at houses, so basically a mortgage in principle, whats the chances of them not borrowing me the money. Or could I make an offer on a house and then find they wont borrow me the money

Regards

mp80

Assuming you have given the correct financial data including your defaults to the broker, should be ok. What are the interest rates though?

morgan78_2

only 2,49% above bse rate which i thought was pretty good

mp80

Seems reasonable, however be prepared they can turn you down at any stage during the process, they can potentially leave the full financial checks until the very last minute, AIP is just 1st stage...

BMSrachael

I'm sure it'll be fine for you, but they can give you a mortgage in principle and then turn you down for the actual mortgage (I know because this just happened to us...) Potentially after you've made an offer on a property and had it accepted (again, happened to us...)

vesper

Agree with the others, they were very quick to give us a mortgage in principal, and said that there wouldn't be any problems. They then turned around and pulled the mortgage at the last minute. I'm not saying that they will do this with you, just be wary that they may do.

morgan78_2

thanks for the replies suppose ill send over info they have requested and take it from there and try not to get to excited

GMS

You have passed the credit scoring which is a good sign. You will know more when the full application goes in.

As long as the defaults were declared on the application form (online I assume) then it should match up.

Have you found a property yet? The broker would have needed to put a Loan to Value in to get a decision. If the LTV changes then it would need to be re-scored.

Underwriters can decline for any reason so don't count your chickens just yet. The fact that you got a DIP is a good start though.

Good luck

Thrugelmir

If you can afford a bigger mortgage and have the money to move house. Then why not increase the payments to your creditors to clear them quicker?