What can derail this sucker?

CBR600F_2

I went to the bank last week, and spent a few hours applying for a mortgage. After that time I was left with a barrow-load of literature. On the first page it says:

'Dear Mr CBR600F,

Your Mortgage reference number is: xxxxxxxx

We are delighted to confirm our decision to offer a mortgage of £xx,xxx.xx subject to receipt of a satisfactory valuation.'

What does all this mean?

Wutang_2

you have got to be joking?

CBR600F_2

Buddy, I'm so serious it's doing me damage.

somethingcorporate

The bank needs to confirm that the property is worth what you have offered for it, otherwise they will be taking a risk on lending to you, or you may not satisfy their lending criteria at their valuation.

somethingcorporate

Yes, as part of the mortgage underwriting process they will do a valuation of the house you have made an offer to see if they agree. It is the security for your mortgage so quite important that it is worth what you are paying for it!

Dave_Ham

This looks like it could be an Agreement In Principle (Halifax?)

At which point all manner of things could derail it to be honest.

If you have told the truth, then nothing to worry about...

kingstreet

I've decided I now champion the "all sales should be advised sales" cause.

There is no way on God's green earth someone should be able to walk out of a bank or building society branch asking this question.

Perhaps they've been sticking leaflets in hands so long they've forgotten how to do the job...?

CBR600F_2

But I didn't walk out. I snatched the mortgage advisor's pen off her, clenched it between my bum cheeks, and commando rolled my way out. I'm beginning to think it was maybe the wrong thing to do. That it'll have a negative effect on my application. Some people were crying.

GMS

That clears it up then. Rather than ask what you had just applied for you were eyeing up a novel way to steal a pen.

The 'adviser' may well have been in fear of this hence why they neglected to give you any information regarding the process.

CBR600F_2

What I don't understand is the wording of it. It makes it sound as though the only thing standing in the way of awarding me a mortgage is a valuation. But doesn't the underwriter now get to put his or her greasy paws all over it?

Why didn't they write 'subject to a satisfactory valuation and a successful credit check' or some such bullhonkey? Why?

GMS

Sounds like a DIP which is an indication to lend. Why not go back to the bank and ask? Fearful of pen reprisal?!

Have you completed an application? Have you provided any proof of income? Have you found a property?