Mortgage in Principle help

Kweedan

Hi All

I just have a small enquiry about a Mortgage in Principle I have with the Nationwide.

The mortgage in principle is for 128,000 80% LTV (so property price would be 160,000). We did this a few weeks ago for a property that went to best and final offers. ( We would not have done it had we known how many other offers there were, we were unfortunately misled and thought we had it in the bag which is why we did it, but that is a different story).

Mine and my partners dream house has come up a few days ago, and we have put in an offer of 160,000 as per our mortgage in principle.

The estate agent has come back this morning and said 162,000 and its ours :j

The only thing is, our mortgage in principle is worth 160,000. Our estate agent told us that we are able to put the extra 2,000 into the deposit, so it does not affect the amount that Nationwide have said they will lend to us. We have this extra money absolutely no problem, however don't want to go ahead with the mortgage application if we are not able to do this.

We are really hesitant to do another mortgage in principle as this 128,000 was the second one we have done in a short amount of time (we did one back in January for a flat that fell through just before exchange). In an ideal world we would have not done one unless we had an offer accepted, but as above we had to do one for a property we tried to get a few weeks ago. These two mortgage in principles have not done much good to our credit reports (we are both young first time buyers with not much credit history) so do not want to do another one if we can help it!

Could somebody please confirm that we would be able to do what the estate agent has said? Any information would be so much appreciated

Thank you!

TamsinC

Basically - yes.

We had a mortgage in principle drawn up for one house - bought a different one at a different price - didn't get a new mortgage in principle as that is decided on circumstances not the house. You have a MIP now you need an actual mortgage. They will lend you £128K how much you actually spend on a house is your choice.

Semple

As above, the AIP/DIP/MIP is basically just a figure that the lender will go upto based on the information you've supplied.

If you can add more to your deposit then that just adds to the overall budget that you can spend on the house purchase.

Kweedan wrote: »

These two mortgage in principles have not done much good to our credit reports (we are both young first time buyers with not much credit history) so do not want to do another one if we can help it!

Who were these with?

The recent two i've done with Halifax and Santander both confirm soft searches, so only visible to you.

Kweedan

Hi Semple, thanks for the confirmation, really good to hear

Our mortgage is with Nationwide, unfortunately they do hard searches at the MIP stage So two in 3 months has not done us much good! Our credit ratings are still reasonably good but they have taken a knock, so we do not want to ruin it any further!

Thanks

TamsinC

You don't need another MIP - especially if staying with Nationwide - go straight to full mortgage application

Looking at my credit score the Nationwide hard search is there for the MIP but not for the mortgage so I'm assuming they don't do another one to get to mortgage offer. SO the search already done should tide you through.

Kweedan

TamsinC thank you, that is good to know

Yeah you are right with that - our previous mortgage application with them the first time we tried to buy a property went all the way to our offer being accepted without another credit search, they must only do one at the principle stage.