What if the mortgage is not approved?

remorseless

I am still tossing at the idea of maybe considering buying, etc...

What happens if after finding a place, the application for the mortgage falls through? Everyone just goes back home and that's it?

Thrugelmir

remorseless wrote: »

Everyone just goes back home and that's it?

What's the alternative?

Until you've a mortgage approved very little will happen.

remorseless

Thrugelmir wrote: »

What's the alternative?

Until you've a mortgage approved very little will happen.

I honestly don't know what's the alternative! Do you try another lender? Need to give it a rest for 6 months? Appeal?

I really don't know how mortgages work in the UK...In Oz most mortgages are pre-approved, so the lender will give you an approval first so you have a range. Then so long you buy something within the 'parameters' then it's fine... in UK seems back to front!

What's the point of going shopping if you don't know if you can spend :rotfl:

Thrugelmir

remorseless wrote: »

What's the point of going shopping if you don't know if you can spend :rotfl:

Lenders have online calculators that will give you an indication.

Alternatively ask questions as there are resident brokers on this forum who can provide guidance.

[Deleted User]

It is best to get an agreement in principle first, where a lender will tell you how much they think they will lend you based on what you earn and a very basic check of your history. This is what you go shopping with, as you then know what priced properties for look for. Then once you've found a place you apply for a full mortgage- if you've hidden anything in your history it may then get rejected, but if you're unsure it's best to go to a broker for you AIP as they will be able to advice what mortgage lender to go with based on your salary and situation.

Westminster

I doubt an estate agent will take you seriously without financially qualifying you (they would prefer and will push their in-house broker - but you can push back hard enough if you have your own broker and a decision in principle).

Without proof from a lender that you meet the criteria in principle for a mortgage of the required sum, your offer will be politely batted aside and the house will stay on the market until someone 'proceedable' comes along.