Help needed with mortgage process

TMC35

Hi,

Please can someone advise me on this...

At what point during the buying process do you have to agree with the mortgage provider what LTV you will be taking the mortgage at?

For example.....If I had a 10% deposit when I get my DIP and start looking and the buying process takes a while and I therefore have more savings available when it's time to exchange, would I be able to change my mind and pay a 15% deposit on exchange of contract to benefit from a lower interest rate or does this get finalised at the full mortgage application stage?

My sister seemed to believe that once the mortgage application process has been completed then you can't change this, but she wasn't 100% sure as she hasn't bought a house recently.

Please can someone advise the general rule on this?

Many thanks

Smiley1987

When you formally apply for the mortgage (after offer accepted on a house) you'll need to decide your LTV. We were initially going to go for 18.25% but the advisor said finding the extra for 20% would bring the interest rate down.

As far as I can tell you'd need to re-apply if you wanted to increase the LTV.

you could always save the money and make some overpayments as soon as the mortgage starts (as long as they are below the amount where you get charged, £500 a month for Nationwide)

kingstreet

Get the DIP for the highest LTV/amount you need.

At the full application, set out the true details, hopefully lower.

If the details change again between full application and completion, report the changes to the lender. If a new product is needed, another fee may be payable.

One of our clients has changed product today. Nationwide has cut its 2 year fix, so he has to pay another £99 booking fee, but he will still make a net £500 saving over two years, so it's worth it.

TMC35

kingstreet wrote: »

Get the DIP for the highest LTV/amount you need.

At the full application, set out the true details, hopefully lower.

If the details change again between full application and completion, report the changes to the lender. If a new product is needed, another fee may be payable.

One of our clients has changed product today. Nationwide has cut its 2 year fix, so he has to pay another £99 booking fee, but he will still make a net £500 saving over two years, so it's worth it.

Thanks for the advice, really helpful.