When do you apply for a mortgage?

ellie27

Seems a silly question?

We are in Scotland.

We have been in touch with a mortgage broker in hope of getting a mortgage (hubby is a contractor so not straight-forward!)

We have supplied the mortgage broker with numbers - eg the minimum deposit we will have, the likely cost of the house we will want to buy etc.

Broker says 'As discussed, I am pleased to inform you that I have found lenders who will consider the mortgage using either your Daily Contract Rate or Limited Company Accounts as evidence of income. Once you have found the property that you would like to buy, I will re-look at the rates and recommend the best deal available to you at the time.'

So, when do we apply for a mortgage? It may be that the house we want to buy is £300k or £240k. Do we apply for a mortgage assuming we buy the most expensive house? Which means that if they OK it then we are obviously fine to buy a house which is cheaper than 300K?

Any help is great thanks!

Solsol

We got a mortgage in principle agreement and the MA told us we'd be able to afford to buy up to £240k
When we eventually found a house we liked, we had an offer of £225k accepted and then went back to the bank and did the full application.

Not sure if things work differently in Scotland though

amnblog

Getting a mortgage offer in principle first is a smart move - particularly for Scottish borrowers who need swifter and more dependable action on the mortgage than borrowers elsewhere in the UK.

You don't need to have found a property to get a mortgage offer in principle but you should have an idea of your price range.

Ask your broker.