Decision in Principle from BROKER

JamesBro

Hello,

Me and my partner are first time buyers.

I've been given a DIP by a broker and told I can get a mortgage between up to £300k with a rate of 3.3% - 3.4%.

We've begun making viewing arrangements, and - when speaking to estate agents - they've been surprised by my broker not having told me which lender it was with.

So I spoke to the broker who says I won't get a lender until I have an offer accepted and then he will go to the market to get the actual deal.

So, I know DIPs are not that important anyway, given that it's prior to any real checks. But how much difference is there between a DIP from a broker and a DIP from a lender? Will lenders' DIPs have more chance of actually materialising into a mortgage as they do more checks (credit wise) at the outset?

Should I try and speak to a lender? It's hard to know.

Essentially, I don't want to waste the time of a seller, have an offer accepted, only for them to be let down by my mortgage not coming through.

We are looking at a 95% mortgage for a 29 year term. Also, we are confident with our earnings that the deal is fine, but I'm on a Fixed Term Contract with my employment, which expires in June but will either be made permanent or I'll be given another 12 month contract. This is pretty much certain but won't be in writing. How detrimental could that be? How much will the market be limited by (how long's a piece of string), and - more worryingly - could it jeopardise the deal completely?

Thanks.

ACG

A DIP from a broker is equal to a DIP from a lender.
It makes no difference who the DIP is from.

If the DIP was with say Halifax today, but by Monday (for example) when your offer is accepted, Nationwide may be the cheapest lender. So it really makes no odds who the DIP is with. It sounds to me like the agents want to know, so they can turn round and say "we deal with them also" and hijack the application.

Whatever an estate agent says, take with a pinch of salt. I do not hold estate agents in very high regard.

JamesBro

Thanks ACG. Yes, I'm inclined to trust my broker more than the EA!

Will go and view some houses in good confidence then. Cheers.