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Decision in principle for estate agent
virginblue4
Posts: 54
Forumite
Hi everyone,
My partner and I have been house hunting and came very close last week to buying a property but were beaten to it by another couple.
We’ve been looking in the meantime and found an even nicer house that ticks those remaining few boxes. We found out a few hours back that our offer has been accepted, so we are now super excited!
I just have a question regarding our deposit in principle. The estate agent has asked for us to send him a copy of it. We are using a mortgage broker but have been looking at a variety of different properties. We have had illustrations done at various price points etc and are happy with the mortgage repayments etc. Because we were looking at a variety of different priced properties, the mortgage broker recommended she get us a decision in principle for the maximum amount we can borrow (£245,000) from Halifax who only did a soft credit search. This was just to give us more ‘clout’ when making offers to ensure the estate agents took us seriously.
However, for the property we have had our offer accepted on, we only need to borrow £238,500 and this will be with Nationwide. I want to get everything to the estate agent as soon as possible, so I want to know if I can just send him the Halifax decision in principle even though we won’t actually be going with them, or do I need to get a decision in principle for the correct amount from the actual lender we will be using? I can’t imagine it matters because this is just showing what we can potentially borrow. I guess I’m just worried he will see that we can borrow more (he already knows we are putting down a 10% deposit) and then try and get more money out of us.
Maybe I’m just completely overthinking this?
Thanks for any advice!
My partner and I have been house hunting and came very close last week to buying a property but were beaten to it by another couple.
We’ve been looking in the meantime and found an even nicer house that ticks those remaining few boxes. We found out a few hours back that our offer has been accepted, so we are now super excited!
I just have a question regarding our deposit in principle. The estate agent has asked for us to send him a copy of it. We are using a mortgage broker but have been looking at a variety of different properties. We have had illustrations done at various price points etc and are happy with the mortgage repayments etc. Because we were looking at a variety of different priced properties, the mortgage broker recommended she get us a decision in principle for the maximum amount we can borrow (£245,000) from Halifax who only did a soft credit search. This was just to give us more ‘clout’ when making offers to ensure the estate agents took us seriously.
However, for the property we have had our offer accepted on, we only need to borrow £238,500 and this will be with Nationwide. I want to get everything to the estate agent as soon as possible, so I want to know if I can just send him the Halifax decision in principle even though we won’t actually be going with them, or do I need to get a decision in principle for the correct amount from the actual lender we will be using? I can’t imagine it matters because this is just showing what we can potentially borrow. I guess I’m just worried he will see that we can borrow more (he already knows we are putting down a 10% deposit) and then try and get more money out of us.
Maybe I’m just completely overthinking this?
Thanks for any advice!
0
Comments
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virginblue4 wrote: »I guess I’m just worried he will see that we can borrow more (he already knows we are putting down a 10% deposit) and then try and get more money out of us.
That seems unlikely.
The vendor has accepted your offer of £238.5k - so the EA's fee might be around £2300 to £3500.
If the EA now decides they want to you to offer £245k, it might mean an extra 2 or 3 or more days of negotiation - and earn them an extra £65 to £100. It's probably not worth 2 or 3 days of extra work.
And if the result is that you get annoyed that your previously accepted offer is now rejected - you might decide to walk away - and the EA loses everything.0 -
Hi, you could ask your mortgage broker to email the agents to confirm that you have met with them and are able to afford the property and have a sufficient mortgage in principle.0
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virginblue4 wrote: »
Maybe I’m just completely overthinking this?
You are .........0 -
Send them the Decision in principle. Your overthinking it.0
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You are over thinking it but quite right to be wary of estate agents behaviour.Signature on holiday for two weeks0
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A decision in principle isn't a mortgage offer so it won't matter who bank it's from. It just shows your affordability. Send it off and kick off the process! Good luck!0
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