Northen Rock - How do I know if approved?

snowmaid

I am probably just being paranoid! (Hopefully!)

We had a 'mortgage in principle' with Northern Rock. We have found a house. The application for the mortgage was put through. We have had a letter from the surveyors that they have been instructed by Northen Rock to do a survey. Survey is booked for Monday.

Northen Rock are asking what repayment vehicle we plan to use. Advisor said to write to them that we plan to get an ISA.

Does this mean the mortgage has been approved?!?!? Advisor says that it is and that they wouldn't instruct a surveyor if they weren't going to finance the purchase??

Can I take it that they will mortgage subject to the survey being in order?

payless

Are you getting an ISA?

snowmaid

payless wrote: »

Are you getting an ISA?

Yes, hubby and I were thinking that we should, why?

pania

Sorry guys but this isn't strictly correct. firstly let me say that i am a mortgage advisor but as i do not know you're circumstances this is just my opinion not advice.

A survey is only a part of the information gathering process used by the lender for determining if they are going to progress the agreement in principal to a full mortgage offer. You are financing the survey not the lender so why on earth wouldn't they carry it out!
Your mention of a repayment vehicle indicates that you have opted for interest only. In this case you would usually need to provide the lender with details of an ISA you have opened, such as an account number. this is just to show that you have made provision to pay the outstanding amount back at the conclusion of the term.

I wouldn't worry at all, this is all part of the process, speak to your advisor if you have concerns.

Hope this helps.

homer_j_3

Pania is correct and I have had mortgages turned down after survey has taken place with them.

I always without fail request the any cases that I submit are fully underwritten before survey is paid for.

Whilst I understand this may worry you, I would say that I have done quite a few cases and the ones that this has happened to can be counted on my hands but its as stated above - you are paying for it so they dont lose out if they find something at a later date.

snowmaid

Thanks guys.....I will now go slit my wrists!!!!! :eek:

My advisor said that they wouldn't normally do a survey if they had any doubts as to whether they were going to mortgage or not.

I understand that it is subject to the state of the house and whether it is worth the mortgage or not, that much I know.

He doesn't seem to be worried, but then it isn't his money!! :rolleyes: