Should I look elsewhere...

TheMiner

I have an agreement in principle (from Norwich and Peterborough), but the maximum they can lend is exactly what we would need to borrow on a property we like. The reason why I went to them is that the rate is quite attractive (base rate + 2.89% 3 year tracker for 85% LTV - even if it goes up by 1% in that time which I believe is unlikely, it's still equivalent to fixed rates we've seen)

Now I've seen a few horror stories where the mortgage application goes through and the actual mortgage offer is less than the AIP, so I'm thinking I'm best to go to a lender who will potentially give us more?

Deliberately haven't given any details , but can if required.

kingstreet

You've already had an agreement in principle and a credit search done. You might as well wait and make a full application to them before looking elsewhere if you need to.

Lenders tend to reduce borrowing on a full application because of a valuation issue, not because of income issues, which are normally resolved early in the process.

TheMiner

That's good to know - thanks

TheMiner

Well - offer was accepted yesterday and mortgage application completed. Fingers are crossed...

TheMiner

Hmmmm - schoolboy error. When I did the application, I calculated the wife's part time salary at 60% of her full salary (£9k) but we've checked a payslip and she only gets £8700 per year.

The upshot is that the max they will lend is now about £2k less which is money we don't have spare. I should be ok to go to a different lendor (going to try my current one - Nationwide), but I'm just checking the previous credit check for the AIP won't impact on the next one - it was done last Saturday?

kingstreet

No way of knowing.

You can only hope your overall credit score with Nationwide is enough to stand a recent search.

It should be, TBH.

TheMiner

We have no missed payments with them over the three years of our current mortgage, and in fact overpaid £500 a month for ten months last year. There haven't been any other searches for a good six months

Dave_Ham

Fair play - you have not tried to blame anyone else or the bank - these things happen.

N & P are top, top priced on many of the best buys so they will not falter on the amount they will lend.

From what you have said, I would agree and think you will be fine with Nationwide.

Good luck

TheMiner

The house we are buying is probably worth considerably more than the sale price (motivated seller moving abroad dropped asking price from £160k to £135k which is what we have offered) - I've checked on a few sites (Zoopla, Nationwide) and they indicate a value of around £150-£155k

(you can guess my next question)

Can I therefore set my LTV at a lower rate when applying for a mortgage or will they take the sale price as the valuation?

Dave_Ham

No chance I am afraid, bank will only ever take the lower of sale price or valuation.

When you come to remortgaging they will look at the actual valuation..

TheMiner

Dave_Ham wrote: »

No chance I am afraid, bank will only ever take the lower of sale price or valuation.

When you come to remortgaging they will look at the actual valuation..

That's what I thought - no worries. 2 yr fix for me then...