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Mortgage in Principle
foofi22
Posts: 2,213 Forumite
My partner and I are first time buyers.
We are beginning to look at places, however I'm not sure of the purpose/restrictions of a MIP
Say we were to go to Santander and get a MIP, they would look at deposit amount, salaries, spending and say we should be able to borrow up to £X. So we could potentially buy somewhere up to £X + £deposit - does this sound about right?
Now say we have a MIP and have an offer accepted.
Now that we know the property we wish to buy, could we then go elsewhere (say HSBC) for the actual mortgage application if they offer a better deal? i.e. what I'm saying is we would not be tied to whoever gave us the MIP?
Also, is it 'better' to go through a mortgage broker, or is it realistic to search online for deals and apply direct? (assuming we don't have any special circumstances)
Thanks for any advice
We are beginning to look at places, however I'm not sure of the purpose/restrictions of a MIP
Say we were to go to Santander and get a MIP, they would look at deposit amount, salaries, spending and say we should be able to borrow up to £X. So we could potentially buy somewhere up to £X + £deposit - does this sound about right?
Now say we have a MIP and have an offer accepted.
Now that we know the property we wish to buy, could we then go elsewhere (say HSBC) for the actual mortgage application if they offer a better deal? i.e. what I'm saying is we would not be tied to whoever gave us the MIP?
Also, is it 'better' to go through a mortgage broker, or is it realistic to search online for deals and apply direct? (assuming we don't have any special circumstances)
Thanks for any advice
0
Comments
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You aren't tied into applying for a full mortgage with the lender you have a DIP with but it may mean extra credit checks on your record. I'm inclined to say you should try and get a DIP with the lender that is mostly likely to lend to you and offer you the best deal and stick with them unless their deals or your circumstances change.
A broker can be very useful but it does depend on your circumstances. I run my own business so a broker has been useful for me and I'm very happy with mine - he's dealing with me by email for months now, answering all of my questions and I haven't yet paid him a penny. He's also helped me arrange life insurance (just for me) and will also be arranging life insurance for both my wife and I to cover our eventual mortgage.
I'm sure one of the resident mortgage advisors can give you a better idea of how they might be able to help you.0 -
Yes....
Say we were to go to Santander and get a MIP, they would ......So we could potentially buy somewhere up to £X + £deposit - does this sound about right?
.......could we then go elsewhere (say HSBC) for the actual mortgage application......
Also, is it 'better' to go through a mortgage broker, or is it realistic to search online for deals and apply direct? (assuming we don't have any special circumstances)
Yes.
Yes.
Now go to the library and borrow (free) a book on house buying which answer this and 1001 other questions you will have.0
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