Is this a "Decision in Principal" (I'm very confused!!)

wewannamove

Hi,
this is my first post so please bear with me, I confuse myself at the best of times! I'm sure someone might be able to offer some advice, give an opinion or shed some light on my situation (here's hoping!)

Okay the story so far -
Seen a lovely 2 bed semi on a lovely corner plot on a lovely street asking price £160,000, had my current propert valued at £76,000, went to bank to see what they could offer me.
I have £14,000 o/s on current mortgage £4000 (ish) on a cc so after fees and such would be left with around £56,000.
Bank agreed to lend us £115,000 as new property will need a little work doing, we paid the valuation survey cost there and then and then she gave us a peice of paper which shows

Your Mortgage Decision

We are pleased to advise we can lend you £115,000.00 subject to an acceptable valuation, submission of your application and reciept of any required documention.

Happy days :j
Had an offer on our current property, had a survey done proposed buyer then withdrew offer, refusing to allow estate agent to go over it with him. :eek:
Devastated!!!

Rang bank to let them know offer had been withdrawn on current property and she was really quite simply pee'd right off with me, and just said let me know what you want do when your sorted. Does this mean that initial offer of £115,000 will now be withdrawn?? I don't know. Will I have to have another credit check ran if it has and want to try again?

That was Tuesday -

---

Today my estate agent rings me back my buyer would like to have a further survey carried out with a view of making a reduced offer, I am at my wits end.

So the question is really is the "mortgage decicison" no longer going to be valid? Can I go ahead and carry on with the application even though I haven't got an offer on my property yet, just my adviser didn't really want to offer me this information at all, and I don't want to feel judged on my lack of financial knowledge.

Thanks in advance

Thrugelmir

We are pleased to advise we can lend you £115,000.00 subject to an acceptable valuation, submission of your application and reciept of any required documention.

Until you apply there's no 100% guarantee of acceptance.

Wh05apk

Your mortgage agreement in principle is dependent on your own financial circumstances - i.e. income/credit history/commitments etc, so has no impact on the sale of your property, obviously it may have an impact on you, as if you are getting less back, you may need to increase your borrowing, which may need a further agreement.

gazfocus

wewannamove wrote: »

Hi,
this is my first post so please bear with me, I confuse myself at the best of times! I'm sure someone might be able to offer some advice, give an opinion or shed some light on my situation (here's hoping!)

Okay the story so far -
Seen a lovely 2 bed semi on a lovely corner plot on a lovely street asking price £160,000, had my current propert valued at £76,000, went to bank to see what they could offer me.
I have £14,000 o/s on current mortgage £4000 (ish) on a cc so after fees and such would be left with around £56,000.
Bank agreed to lend us £115,000 as new property will need a little work doing, we paid the valuation survey cost there and then and then she gave us a peice of paper which shows

Your Mortgage Decision

We are pleased to advise we can lend you £115,000.00 subject to an acceptable valuation, submission of your application and reciept of any required documention.


.....

You say in your OP that you paid the valuation fee. If this is the case, you really need to check with the bank whether you have actually applied for the mortgage because normally you wouldn't pay for a valuation until your full application was submitted

wewannamove

gazfocus wrote: »

You say in your OP that you paid the valuation fee. If this is the case, you really need to check with the bank whether you have actually applied for the mortgage because normally you wouldn't pay for a valuation until your full application was submitted

I'm assuming I've applied, been down to submit payslips/p60 and had the terms and payments set out to me (which I am more than happy with) and signed documents.

gazfocus

wewannamove wrote: »

I'm assuming I've applied, been down to submit payslips/p60 and had the terms and payments set out to me (which I am more than happy with) and signed documents.

It certainly sounds like your full mortgage application is progessing so you really need to find a buyer for your house asap and continue with the purchase of your new place (unless you want to withdraw your application but that would then create another credit search when you reapply).

wewannamove

gazfocus wrote: »

It certainly sounds like your full mortgage application is progessing so you really need to find a buyer for your house asap and continue with the purchase of your new place (unless you want to withdraw your application but that would then create another credit search when you reapply).

So do you think I should ring bank and arrange valuation survey on new property?

I think my buyer might come back to me and and offer 72,000 - I'm prepared to take a little bit of a hit on asking price.

Many thanks

gazfocus

Yeah, I would proceed with your application for the mortgage on the new house. At the end of the day, you've already paid for the valuation so it might as well go ahead eh?

wewannamove

When I rang and spoke to the mortgage advisor originally though, she gave me the impression that the fact my house was not "sold" I couldn't proceed.
Like I said though I got the impression she was *pee'd off* with this, any wonder why that might be?

I've just checked the online tracking service and all seems in order still.

kingstreet

If you are no longer able to proceed, they are going to have to wait for you to find another buyer until you can.

I would not be proceeding with a valuation, nor expending any more money on fees until the chain reforms.

Someone else may come along and purchase your target property while you are waiting for another buyer. Anything you've paid out will then be wasted money.

gazfocus

kingstreet wrote: »

If you are no longer able to proceed, they are going to have to wait for you to find another buyer until you can.

I would not be proceeding with a valuation, nor expending any more money on fees until the chain reforms.

Someone else may come along and purchase your target property while you are waiting for another buyer. Anything you've paid out will then be wasted money.

He's already paid for the valuation so unlikely to get that refunded and if his buyer wants to come back with a reduced offer, there's little reason why the OP shouldn't continue with the valuation?