When should I be told what the rate is?

Poor_Boy

Hi

I received a DIP from Halifax via a broker a couple of months ago. I asked the broker about rates and he said that that was something that would be discussed if and when we put an offer in for a property. My concern is that I will be put in a 'take it or leave it' situation.

I tried shopping around but every other broker including L&C stopped returning calls / emails and I could get not further. I'm not able to compare deals as it is. He also told me, as I have a daughter and my wife looks after her full time and does not work, only Halifax would count that as having one dependent only, all other lenders would see two dependents and it would not be possible to get a mortgage with anyone else. I don't have a very high wage but fortunately we do have a size able deposit.

Any advice would be appreciated as I don't want to get so far then feel like I have no options. Thanks.

ACG

How can they discuss rates?
They dont know what the final purchase price will be, so the LTV could change.
They also dont know when you will make an application so deals can change.

They could probably give you a ball park rate but that will be about it.

Yorkie1

A DIP is simply a guide as to how much that particular lender would lend you on the date it was issued and in the light of the information given to it at the time.

When you have an offer accepted on a property, you then look at the products and lenders available. You are not obliged to go with the lender which gave you the DIP, and most lenders have several products available depending on the type of mortgage you want (e.g. fixed), the amount of deposit you have and the value of the property.

You should be aware that as your DIP is a couple of months old, it will have been done on the basis of the affordability rules in existence at that time. Since then, the mortgage landscape has changed a little; you'll see references to MMR on the forum. This means that lenders will scrutinise affordability much more closely - with the result that some people are no longer getting DIPs / mortgage offers for as much as they might have done a few months ago.

Might be worth you getting a fresh DIP on the MMR rules?

In the meantime, you can have a look at some lenders' websites to see what products they offer to new buyers, and use a mortgage calculator to see what the monthly payments look like for the different products.

Poor_Boy

Many thanks both. That is reassuring.