MIP timing

Astraeus

Evening all. Just a quick question regarding the timing of applying for an MIP.

We are en route to building up the deposit with which we will be in a position to buy but we aren't quite there yet. A number of estate agents have told us that they'll only book viewings for prospective purchasers who have an MIP.

Are MIPs theoretical in terms of even if we aren't in a position of having the circa £20k now, we could make an application for one on the basis of what we would have by way of deposit and would like to loan or would the lender reject the application on the basis that what we are saying we would put down as a deposit isn't actually held by us at the moment?

Thrugelmir

Astraeus wrote: »

A number of estate agents have told us that they'll only book viewings for prospective purchasers who have an MIP.

Time is money. If you are not proceedable then you'll be wasting their time. Doesn't stop you from looking at areas though to identify somewhere you could may wish to live.

ACG

Im not a fan of getting MIPs/DIPs/AIPs until an offer has been made. I typically check peoples credit reports and do the factfind and then let them know if I am confident or not.

Not all, but most MIPs involve a full credit check which can then affect your credit score if you need another and another. They are also typically only valid fo 28-30 days but the worst bit, is that some show how much you can lend. Give that to an agent and proof of deposit and they know exactly how much you cn go to - when negotiating a purchase price thats not great.

I give my clients a letter I hve typed up which 9 times out of 10 is accepted.

But yes, some agents do insist on it and there is not much you can do other than get it or to try and go to the vendor directly, the vendor should not then need to pay for the agent as the agent turned you away...maybe? That might help knock some money off the purchase price.

Astraeus

Thanks all. Sorry if I wasn't clear in my OP but my question was essentially whether I can get an MIP on the basis of saying where I will be as opposed to where I am. Would like to get one now advising how much I couuuld borrow when I get the deposit together.

alchemist.1

Yes you can.

Use one of the lenders that only do a soft search that way it doesn't make any difference to your credit rating i.e. Halifax online, TSB online

Astraeus

Thanks Alchemist. I'll try the two which you have suggested, along with Barclays which is a further 'soft-searcher'.

amnblog

Don't go running decisions in principle with multiple lenders, even if you believe them to be 'soft search'.

I cannot see the value in your wasting time with this when you are not in a position to proceed. Presumably, there is something about your situation that makes you think you may not get a decision in principle.

Astraeus

amnblog wrote: »

Don't go running decisions in principle with multiple lenders, even if you believe them to be 'soft search'.

I cannot see the value in your wasting time with this when you are not in a position to proceed. Presumably, there is something about your situation that makes you think you may not get a decision in principle.

No, I'm quietly confident (as much as one ever can be with the vagaries of bank's decision-making!) that I will get one. We aren't far off being able to tick the box of having the deposit and I want to get the ball-rolling with house-viewings and ensuring that there is nothing stopping me getting an MiP which, if I only sought one later on, would be too late!

MortgageMamma

I'm just wondering why you are not seeking professional advice regarding your mortgage at this stage? If you are a first time buyer the advice that can be provided at this stage is very valuable. most brokers can operate over the phone these days there is absolutely no need to have a long face to face meeting at your bank or the estate agents with whom you are buying.


Be careful of using the in house broker from the EA you are buying from, or even their conveyancing firm. There is a conflict of interest when doing this and your needs are best served by an advisory firm not connected with the estate agents, after all, who wants an estate agent to know how much they can borrow? or if there is a glitch with your mortgage and you need to buy time the in house broker won't be able to do that for you...


Regards


MM