Scottish offers over help

Susan_Boe

Good evening all! 
I am currently anxious and trying to get my head around a few things. 
I found a propery that I am totally in love with. I've got an AIP through a broker. I asked for the AIP up to £110,000 property value to ensure I could offer over the offers only price. 

The home report says the property is valued at £105k and it was marketed at offers over. It had generated a lot of interest but I had my offer accepted at £107k. 

Now I'm stressing because my mortgage broker is putting through my application tomorrow. I've got a 7.5k deposit. I've just been informed by a friend that I will need to fork out the extra £2k myself, and after doing some research this looks to be the case! 
The broker is currently closed - but because the AIP is for £110,000 and I'm only paying £107,000...with the same available deposit. 
Will they simply "reduce" the deposit by 2k? Obviously I have some available cash - but that is for legal fees/ surveyors etc and I will need to install gas to the property. 

Also - I've heard horror stories of AIP's not becoming full offers. I only gave the broker my Experian report and not the others. Will the lender have done a full credit check on my other files by now? I've not got perfect credit, but my Experian report is much higher with more "good" info than the others. 

Bit of background, I am earning 26k a year with £2000 outstanding debt (which a fair amount of is on a CC I pay off in full each month, but that's the balance right now.) 

Sofee3

Anything over home report value you have to pay but what LTV are you taking, if you are going for 95% then that's £5350 then you'd have £2k for the extra money you paid over home report.

MovingForwards

The mortgage company will base any loan on the value of the property or your offer, whichever is the lowest.

Therefore you only need your deposit to cover the percentage you were going for eg 5% 10% etc of the £107k.

Plus your legals, mortgage arrangement fee, broker fee etc.

AIPs don't turn into full offers when there is something the lender finds that wasn't disclosed or didn't show up on a soft search.

Your broker should have had all three credit reports really, just so he knows there isn't anything in the history that the lender won't like.

What lender is it?

Susan_Boe

Thank you for your response! 
So just to clarify - the AIP was for 110k with a 7.5k deposit (93.2% LTV). 

107k with a 7.5k deposit is 93% LVT. 

105k (the propery value) with a 5.5k deposit (minus the 2k over the value) is 94.9%. So I should just about be fine? Thank you!!! I wasn't planning on buying a property worth this much, which is why I only have a 7.5k deposit! but it's comfortably do-able financially. 

Thank you!!!! I don't think there is anything surprising on them tbh, but maybe I should go check. 😬. 

Susan_Boe

What lender is it?

The broker hasn't informed me yet. Probably want to protect their commission, which is fair enough. I would struggle to get a mortgage by myself. It's only in the last year that I've had a credit card! Partially because I've never wanted one, mind. 

MovingForwards

Susan_Boe said:

What lender is it?

The broker hasn't informed me yet. Probably want to protect their commission, which is fair enough. I would struggle to get a mortgage by myself. It's only in the last year that I've had a credit card! Partially because I've never wanted one, mind. 

What lender is on the AIP?

Susan_Boe

MovingForwards said:

Susan_Boe said:

What lender is it?

The broker hasn't informed me yet. Probably want to protect their commission, which is fair enough. I would struggle to get a mortgage by myself. It's only in the last year that I've had a credit card! Partially because I've never wanted one, mind. 

What lender is on the AIP?

It doesn't say - just has the broker details on it. 

I asked them today who the lender was as my solicitor asked but they wouldn't say, they said I could use their solicitors if I need too. (Which I don't plan to at all). Is this unusual? I'm a first time buyer so this is all new to me! 

MovingForwards

Susan_Boe said:

MovingForwards said:

Susan_Boe said:

What lender is it?

The broker hasn't informed me yet. Probably want to protect their commission, which is fair enough. I would struggle to get a mortgage by myself. It's only in the last year that I've had a credit card! Partially because I've never wanted one, mind. 

What lender is on the AIP?

It doesn't say - just has the broker details on it. 

I asked them today who the lender was as my solicitor asked but they wouldn't say, they said I could use their solicitors if I need too. (Which I don't plan to at all). Is this unusual? I'm a first time buyer so this is all new to me! 

A generic AIP isn't worth the paper it's printed on, one from the lender carries more weight. Brokers do get them from the lenders, sounds like your broker has only done a paper based affordability check rather than any check with any proposed lender.

How can the broker not tell you who the proposed lender is? Does that mean he won't say who he is submitting an application to?

I'm a FTB too, my broker is from England, my solicitors are up here.

I personally wouldn't have the brokers solicitors as my solicitor, but that's just me.

How did you find this broker?

gj373

Susan_Boe said:

MovingForwards said:

Susan_Boe said:

What lender is it?

The broker hasn't informed me yet. Probably want to protect their commission, which is fair enough. I would struggle to get a mortgage by myself. It's only in the last year that I've had a credit card! Partially because I've never wanted one, mind. 

What lender is on the AIP?

It doesn't say - just has the broker details on it. 

I asked them today who the lender was as my solicitor asked but they wouldn't say, they said I could use their solicitors if I need too. (Which I don't plan to at all). Is this unusual? I'm a first time buyer so this is all new to me! 

If I were you I would find another broker. It is NOT normal for the broker to withhold information like this from you.

Susan_Boe

gj373 said:

Susan_Boe said:

MovingForwards said:

Susan_Boe said:

What lender is it?

The broker hasn't informed me yet. Probably want to protect their commission, which is fair enough. I would struggle to get a mortgage by myself. It's only in the last year that I've had a credit card! Partially because I've never wanted one, mind. 

What lender is on the AIP?

It doesn't say - just has the broker details on it. 

I asked them today who the lender was as my solicitor asked but they wouldn't say, they said I could use their solicitors if I need too. (Which I don't plan to at all). Is this unusual? I'm a first time buyer so this is all new to me! 

If I were you I would find another broker. It is NOT normal for the broker to withhold information like this from you.

My broker went through it all today including who the lender was. I'm happy with it all so far. Fingers crossed it is all okay!