Advice please - is our broker right?

lizzie_m

Hi all,

I am looking for some info. I had an appointment with a broker today as we currently rent of my husbands parents and are looking to buy the property.

It is worth 125k and we are looking to borrow 110k. Basically currently my husband and I have some debts, a sizeable loan of my husbands (personal unsecured loan, over 7 years, 3left)and we both have a card of of 4.5k each.

So, his parents are willing to take 90k for the house, and give us 20k back to clear the debts.

I was very sceptical about this being possible, but we saw the broker today and he was very confident that this would be able to happen and expects to have an AIP by the end of the week.

Hubbies income is 28k per annul plus bonus, and I earn 12.5k (part time work as care for my son). I also have a second job, but the broker said he didn't think we would need that as we are already over 40k joint.

Now, I work for a high street building society and I know how ridiculously strict our lending criteria is, so I was only really meeting the broker to appease my husband. However, the broker was very confident -does that sound feasible to anyone here? Is it possible that after 5 years of renting this house we will finally be able to buy?

Dave_Ham

Absolutely sounds possible, will depend upon lender selection although should be possible for sure..

Keep us updated, good luck

lizzie_m

Wow thank you. I was under the impression that with any debts such as cards etc it would be a no go situation.

Thank you very much, but if I could ask one more thing - does it sound possible that it would be a mainstream lender, or will this be a more unheard of provider?

Dave_Ham

I should think it will be mainstream, depends how your broker structures the discount and what he declares will or will not be consolidated on completion. Each lender will deal with this separately and individually.

Do let us know which lender he/she wants to place this with, although definitely try not to worry.

Good luck

kingstreet

Presumably, he'll do this as a "purchase at undervalue from family" using the difference between the value and purchase price as your deposit.

You then use the cash you earmarked for a deposit to reduce/repay your credit commitments at completion.

lizzie_m

Hi,

So, my mortgage advisor has called, we have an agreement in principle from the coventry building society!

Really quite excited, can't believe that finally we are going to get our home.

So that my expectations are set - what would mean that the AIP didn't turn in to a proper offer?

Thanks again.

Conrad

Not wanting to ruin your joyous moment but Coventry are an extremely fussy lender and look into every concievable issue, even the distance you travel to work in terms of petrol costs.

If you get stuck with them, a more mainstream lender like Halifax can consider this one.

Be aware I've come accross instances of lenders not being aware there was no physical depsoit even though the broker / client did tell the lender up front. You have to TREBLE check the lender and Solicitor knows no desposit will be present.

lizzie_m

Thanks,

So the broker advised that on monday at our appointment we will need to pay the application fee - if there is a problem after this stage I am guessing that this is none refundable right?

Hmmm. Makes me nervous from what you have said - we really don't want to be shelling out if the chances are that they may say no.

Why do these companies do AIP's if they are going to change thier minds?!

GMS

lizzie_m wrote: »

Thanks,

So the broker advised that on monday at our appointment we will need to pay the application fee - if there is a problem after this stage I am guessing that this is none refundable right?

Hmmm. Makes me nervous from what you have said - we really don't want to be shelling out if the chances are that they may say no.

Why do these companies do AIP's if they are going to change thier minds?!

Your broker has completed the fact find with you and knows your situation. Much better to direct any concerns to him/her rather than rely on answers in a forum where nobody knows your circumstances.

AIP's are given on the basis of information provided. They do not go into the finer details such as deposit sources, property type etc.

Speak to your broker

lizzie_m

GMS wrote: »

Your broker has completed the fact find with you and knows your situation. Much better to direct any concerns to him/her rather than rely on answers in a forum where nobody knows your circumstances.

AIP's are given on the basis of information provided. They do not go into the finer details such as deposit sources, property type etc.

Speak to your broker

Hi, thanks for your comment. I am not relying on the information, I am just trying to gauge the is situation. I have a meeting with my broker on Monday where I will of course discuss my concerns.

I was simply trying to find out information that might be of interest to me on a really helpful forum.

Dave_Ham

From what I know from the thread, Coventry may not have been my recommendation but as GMS said your broker will know more.

In the current climate, many lenders are open minded about this type of purchase so try not to worry..

Good luck