What's the chances of getting a mortgage?

herbiesjp

To get an agreement in principle you do not need to have sold your property

TheGame7

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herbiesjp

TheGame7 wrote: »

Right, so I guess the next stage is to contact a company like the MSE recommended London and Country Mortgages.

What information will they want from me?
Valuation of my house, asking price of the house I want to buy, our joint yearly gross income (for last year or last month?), how much more cash we would want to put in up front..

..anything else?

And should I state at this stage I am leaning towards a fixed rate mortgage, or will they provide me with a number of alternatives?

Since they are fee free, where and when will they make their money? Will it be at my expense? And are there any face-to-face alternatives that match the fee free service London and Country Mortgages offer as it may be easier to discuss that way rather than over the phone.

And back to the question of my house currently not being in the market or having a definite buyer.. how would this affect the house purchase? Would it be the vendor who relies on it as the deposit up front? Or would it be the mortgage lender that is depending on a sale to go through in the next few months to offer me a mortgage? What are the problems if it doesn't sell right away? Massive mortgage?

I just don't want to mess the vendors around.

Sorry about the long post and thanks for all your help.

NOt sure if L&C will help you here as you have not had an offer accepted on a property yet.

In order for any broker to give any advice, they will have to satisfy the FSA regulation of knowing the customer - to do this they will have to complete what is known as a fact find, and it will request a lot more information than what you have listed, such as address history, employment history, etc etc



If you tell an adviser you would like to see options from both fixed rates and variable rates (such as trackers) then there is no reason why they cannot provide you with that information.

They will get paid a commission by the lender, which is disclosed in the Key Features Illustration. There are plenty of fee free advisers that work over the phone/internet as well as face to face.

There are lenders that can offer non simultaneous completions, however what is normally done is the vendor and purchasers in the chain agree completion datesin order to allow the chain to complete on the sales within it.

It is for this reason that you need to be up front with the vendors about your current position as you say you do not want to mess them around. This way they know from day one that you are good buyers (with an agreeed mortgage) and with your orn house on the market.

HTH

TheGame7

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herbiesjp

I would firstly look to get the mortgage agreed in principle.

That way you will know exactly what your buying power/mortgage potential will be.

Once you know that, you can them put in offers confidently to the vendor, knowing that the mortgage will be agreed upon submission of a full application and satifactory survey on the new property.

Once an offer has been accepted you can then submit the full mortgage application and start the ball rolling. YOu would either tell the estate agent or the vendoe at the same time as making the offer about your current situation i.e. mortgage all agreed and ready to go, yours is on the market. Don't forget that the information flow is two way here, so the vendor may also not hae found a place to move into also, so you would need to found out about their position as well

HTH

TheGame7

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JoeK_3

TheGame7 wrote: »

Hi, thanks for being so responsive to what may seem to be uneducated questions, but I am very new to this so am grateful for your patience.

I am slightly confused about getting the mortgage agreed in principle. From what I have read on MSE, L&C is a good source to find out the range of mortgages available to me. But you suggested that they may not help until I place an offer.

But I don't want to place an offer until I am sure I can get a mortgage and you support this suggestion with your last comment. So what can I do?


As for the vendors, they are already in their new home.

TheGame7 wrote: »

So in theory, if I was to have an offer accepted and a mortgage agreed for the balance (asking price + other costs - my house value - deposit) would it remain a waiting game until my house is sold before we can start the process for the actual purchase.

I know I am thinking well ahead, but if it is not for this property it could be another so it would not hurt to get a good understanding.

Many thank yous.

A quick answer to your question is, yes.

JoeK

herbiesjp

TheGame7 wrote: »

Hi, thanks for being so responsive to what may seem to be uneducated questions, but I am very new to this so am grateful for your patience.

I am slightly confused about getting the mortgage agreed in principle. From what I have read on MSE, L&C is a good source to find out the range of mortgages available to me. But you suggested that they may not help until I place an offer.

But I don't want to place an offer until I am sure I can get a mortgage and you support this suggestion with your last comment. So what can I do?


As for the vendors, they are already in their new home.

So in theory, if I was to have an offer accepted and a mortgage agreed for the balance (asking price + other costs - my house value - deposit) would it remain a waiting game until my house is sold before we can start the process for the actual purchase.

I know I am thinking well ahead, but if it is not for this property it could be another so it would not hurt to get a good understanding.

Many thank yous.

That is how L&C do it.

It is not how most advisers do it. If you find a good fee free whole of market adviser, and ask them to get an AIP, they should do it staright away for you irrespective of whether you have found a property or not.

HTH

TheGame7

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