First time buyers

dippa

Myself and my partner popped into the bank to get a rough idea on what we would be able to borrow in terms of a mortgage. We were expecting either a high deposit or low mortgage offer, due to having a default on my credit. The default has been paid, however it will still be show on my credit score until 23/12/18. To our surprise, the bank gave us an agreement in principle, and I received a phone call from the bank the following day to confirm a few things. The advisor was unaware of the default and explained that it hadn't shown, and even when she inputted this onto our information, we were still offered £308,000.

After receiving an agreement in principle, can you still be declined for a mortgage? And will the amount alter when going through the application process? All they wanted to see at present was our latest three payslips and also our monthly outgoings. Would they require more information when applying for the mortgage?

Our plan is to buy our house in 12 months time, as we are still in the process of obtaining our deposit. We wanted to gain some advice and tips on whether or not it would be best to go through a mortgage broker?

ACG

An AIP can be withdrawn at any time for any reason and/or the loan amount can be altered.

If you are not looking to buy for 12 months, the default will have dropped off by then anyway.

dippa

Thanks for your reply, yes that was our plan.

Are we better off going through an independent mortgage broker?

ACG

Probably, but in 12 months you will presumably have no adverse? At that point I do not think it matters too much. A broker will obviously research the market to ensure you get a good deal and offer support and guidance along the way, but if you are passing an AIP now, then I am sure you will be fine in a years time whether you use a broker or not.

GoingOn30

Your AIP is pretty meaningless if you don't intend to buy for 12 months.
Focus on really tightening the purse strings with your outgoings and building up those savings. You can use lenders online calculators nearer the time to give you an idea of what they might lend you in terms of what you can afford.
Once you've started viewing properties you can approach a broker who can look at things in more details if you decide to make an offer.
Remember you'll need to save for other costs such as survey, solicitors, mortgage arrangement, removals.
Happy saving!