Post Office AIP - FTB

peytonx

Hi all,

I am (hopefully) soon to be a FTB. I am married and due to my OH bad debt I will be applying for a 90% LTV mortgage myself. I have now found a property which I would like to make anoffer on. It is on the market for £90k but I am hoping to get it for £86k. My income is £25k pa and I have no adverse debt.

I have a AIP from the post office, but I have not seen a mortgage broker for their 90% LTV mortgage fixed for 5 years at 4.75%. It was done online and the AIP returned within a minute.
I am very concerned about having an offer accepted and then getting turned down for the mortgage. Due to how easily the AIP was obtained I am wondering how reliable it is.

Is there stats anywhere giving PO/ BOI's sucessfull application figures? As I have not seen a broker I do not know if they are likely to offer me a mortgage.
Doe anyone know how many PO AIP's fail after full application?

kingstreet

PO is direct only so we can't really say.

There was an article some time ago about the poor rate of acceptance for 90% products.

http://www.thisismoney.co.uk/money/mortgageshome/article-2066566/Post-Office-lenders-accused-window-dressing-90-mortgages.html

http://www.independent.co.uk/money/mortgages/lenders-reject-nine-out-of-10-applicants-ndash-welcome-to-the-90-per-cent-loan-2040523.html

As this is Bank Of Ireland in disguise, be careful. You don't know if there will be any retention products on offer when the fix ends, nor what the SVR might be...

Dave_Ham

Definitely have a back up plan, they sometimes get involved in partner's rationale for not being on mortgage and may not like.

Also, be mindful of the source of deposit on a single application.

little_miss_muppet_face

It was a year and a half ago now, but i also used PO for a 90% mortgage, same as you got AIP easily, and when ready proceeded to full offer. took less than a week, and was totally hassle free, was notified of each step by phonecall and really was straightforward. i was very impressed.

peytonx

Would I be better seeing a Mortgage Broker so they can apply to a lender is they will know is more likely to accept me?

I am having trouble choosing one and I have no recommendations, which is why I applied directly to PO.

I would like a whole of market broker and perfer a local one. I looked online and found this company:

Oh, I can not post links but the are called The Sheffield Mortgage Company (if you google them).

I do not particually like the look of their website but they have been in business 14 years. I am not sure about this statement though:

'Sheffield Mortgage Company considers a very large proportion of the market, enough to be representative of the whole market.That does not mean that Sheffield Mortgage Company considers every mortgage on the market.For example we do not consider mortgages from HSBC and Nationwide.'

Their fee is £645.00. Is that about right?

Dave_Ham

Have not looked at the website, although not considering Nationwide appears they have a strange panel.

The fee is not unreasonable, although a random figure without even knowing your case.

Be mindful, PO are likely to have better rates than the most flexible so maybe see how you get on first as they can be quick through the processes.

Good luck

kingstreet

No. Too high if they are receiving commission on top. IMHO.

Anyone not considering Nationwide is nowhere near whole market.

I don't know anyone in Sheffield, but I suggest you try;-

https://www.unbiased.co.uk switching off the "sponsored ads only" option, so you get a full list for your area.

As an example, we charge £249 and are paid commission by the lender for our whole market proposition, but we only deal face to face. On your case, we'd receive £249 from you and £232 from the lender.

That is a reasonable amount for advice and arrangement, in my opinion.

davilown

I saw a 'whole of the market' finance advisor and knew that he would charge me £125 for finding the mortgage (including applications etc) and would keep any commission he got from the company.

What made me think he was honest and genuine? He recommended a mortgage that he couldn't assist us with because he didn't deal with Santander. I'll almost certainly go back as it was, we feel, money well spent.

peytonx

I think a broker is the way we perhaps need to go as the house is a steel and concrete build. I never even considered the term non standard build and what effect it may have on the mortgage application.

The type is call Dorlonco. Does anyone have any experience arranging mortgages for this type? As far as I can tell online they are not (yet?) classed as deffective.

Although we love the house and was thinking of making an offer next week, we may have to walk away

kingstreet

According to my (admittedly eight year old Nationwide guide) Dorlonco property was;-

built pre-1939

Is unacceptable - But special cases of high merit can be
considered. These will be generally high value
properties with proven demand. Properties that are
accepted locally by other major high street lenders may
also be considered, even if values are lower than
traditionally built properties; however, there must be a
proven demand for the properties. All cases must be
referred to Risk Policy, NAC.

So, I suggest you establish the property's acceptability to the lender before you expend cash on fees and costs.