Precise Mortgage Application

Ginga16

Hi. Looking for some advice........
Going through L&C who have placed us with Precise Mortgages due to our circumstances (currently on DPP)
Our broker has advised Precise don't do Decision in Principle and we need to have an offer accepted before we go to them with application??

I'm really worried we put our offer in, it gets accepted then Precise turn us down. They really are our last shot at the moment.

Is this normal practice for Precise?? Affordability is not an issue and we have never missed payments from for the 5 years our plan has been running. Already paid off £50k with the last £10k going to be cleared from our equity.
TIA

MsGeorge88

Do you mean you need to have an offer accepted on the property before going for a DIP with Precise?

I've had a DIP from Precise recently and I am yet to complete my application with them.

kingstreet

Ginga16 wrote: »

Our broker has advised Precise don't do Decision in Principle

Not true. It's a soft search DIP and it also confirms the products available to the applicant.

L&C don't do DIPs because they know a lot of cases would be picked off by estate agents and other brokers further into the process and they don't want the wasted effort.

Ginga16

L&C have gave me there version of a DIP to show to the Estate Agent. Just worried we put the offer in then end up with no mortgage.

kingstreet

Ginga16 wrote: »

L&C have gave me there version of a DIP to show to the Estate Agent. Just worried we put the offer in then end up with no mortgage.

That's just an affordability check.

If you are a Precise-type customer that's just not sufficient.

Verix

As above, Preicse definitely do an agreement in principle. The rate you can get with them can vary wildly depending on what products they can offer you at the end of the AIP. Their current best 2 year fixes are in the 3.5% region and their worst 2 year fix rates are in the 6% region. That's potentially a huge difference in how much you're paying each month. I would definitely be pushing to find this out before putting an offer on a property.

[Deleted User]

Companies like L&C are the reason EA do so many checks on customers who are buying with a mortgage.
After all the time you have spent speaking to L&C are you really any further forward? No DIP, no knowledge of what rate you will be offered (if any), no idea of what fees apply to the mortgage

Precise 100% do an instant decision AIP. Either ask the L&C broker to do their job properly or find someone who actually wants to invest time in to giving you a proper level of service

amnblog

Very topical at the moment.

Being misleading with the facts to suit ones own agenda.

Well done L&C.

Mortgage_Adviser

Ginga16 wrote: »

I'm really worried we put our offer in, it gets accepted then Precise turn us down. They really are our last shot at the moment.
TIA

And the consequences of this to you if the above was to happen?
NOTHING.

The consequences to the broker on doing the formal decision in principle for some one wihtout the offer accepted for the property is that if their offer was rejected ir is a time wated for nothing.


I am not a fan of L&C but there are many brokers who need to go through the numerous due diligence hoops, full fact find, ID checks, affordability checks etc etc before they are allowed to do the DIP, so I can see the point of them not wanting to do the DIP before the client has secured the property.


Saying the above this is still not an excuse for L&C to lie and say that Precise don't do the DIPs.

[Deleted User]

Mortgage_Adviser wrote: »

And the consequences of this to you if the above was to happen?
NOTHING.

The consequences to the broker on doing the formal decision in principle for some one wihtout the offer accepted for the property is that if their offer was rejected ir is a time wated for nothing.


I am not a fan of L&C but there are many brokers who need to go through the numerous due diligence hoops, full fact find, ID checks, affordability checks etc etc before they are allowed to do the DIP, so I can see the point of them not wanting to do the DIP before the client has secured the property.


Saying the above this is still not an excuse for L&C to lie and say that Precise don't do the DIPs.

I agree with this to an extent. When you have seen hundreds and hundreds of cases go through you generally get a feel for a case within that first hour or so. I dont tend to DIP clients immediately if i know they are going to be accepted by whatever lender is sourcing best that day. No point doing all that work if you are 100% sure it will be fine.

However, if i have a case where the client has concerns about their own ability to get a mortgage I will get them an AIP every single time.
Especially since most lenders to soft checks now there arent many legit reasons for not getting an aip for someone who needs to go to a lender like precise.

Its a chicken and egg situation for L&C. Do they not do proper AIP because they lose so much to other brokers, or do they lose so much to other brokers because they dont do a proper AIP

Ginga16

Thanks for all your replies.
We have found a property but the vendors won't accept an offer from a buyer unless we have our up for sale! Leaves us in a sticky situation - do we bite the bullet and put in an offer, put ours up for sale and then do the application, or find another broker who could get us DIP so at least we would know what our chances were. I just don't know what to do for the best?????