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Potential issues putting offer in on house?

soplum
soplum Posts: 34 Forumite
10 Posts
in House buying, renting & selling
Hi all,

I currently have a mortgage in principle (MIP/DIC/AIP), however I cannot actually apply for a mortgage until the start of June as I am buying 3 months before my job start date (I am using a broker)... 

We have fallen in love with a house and want to put an offer in, we are first time buyers and don't know the ins and outs of the process!

Are we able to put an offer in on the house (and have it accepted and taken off the market), however delay the buying process a few weeks until the start of June when we can actually apply for the mortgage?

Any advise would be great.

Thanks!
«13

Comments

  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    The start of June is only a few weeks away. Your mortgage application is not going to be the critical path.
  • soplum
    soplum Posts: 34 Forumite
    10 Posts
    AdrianC said:
    The start of June is only a few weeks away. Your mortgage application is not going to be the critical path.
    Okay so are you saying we can put an offer in on the house? Would be have to make the seller aware we cannot apply for the actual mortgage until start if June? 
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    No, just put the offer in. Get moving on things like the survey and searches, and worry about the mortgage app in due course.

    For all you know right now, there may not even be a complete chain until June. You have no idea how slow they'll be in getting the draft contract to you.
  • soplum
    soplum Posts: 34 Forumite
    10 Posts
    AdrianC said:
    No, just put the offer in. Get moving on things like the survey and searches, and worry about the mortgage app in due course.

    For all you know right now, there may not even be a complete chain until June. You have no idea how slow they'll be in getting the draft contract to you.
    Thanks! But... what if our mortgage application is then declined?  :'( 

    Our MIP is approx 50k above the price of the house we like so I guess if we had a MIP for a lot more we would more than likely be accepted for a mortgage 50k less?
  • MovingForwards
    MovingForwards Posts: 17,150 Forumite
    10,000 Posts Seventh Anniversary Name Dropper Photogenic
    Put your offer in, if it's accepted it could take the EA a week or so to send the memorandum of sale out. You then need to provide ID to the solicitor, that takes you to June. Mortgage application then goes in.
    Mortgage started 2020, aiming to clear 31/12/2029.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    edited 8 May 2021 at 8:37PM
    Ah, well... if your mortgage app is declined, then you're stuffed, aren't you...?

    The AiP says "Yep, we're basically happy to lend this much to soplum". The full app looks at the property, too.
    Is there a reason why the lender may refuse to lend against this property?
    In case of downvaluation, what sort of LtV are you looking at?
  • soplum
    soplum Posts: 34 Forumite
    10 Posts
    AdrianC said:
    Ah, well... if your mortgage app is declined, then you're stuffed, aren't you...?

    The AiP says "Yep, we're basically happy to lend this much to soplum". The full app looks at the property, too.
    Is there a reason why the lender may refuse to lend against this property?
    In case of downvaluation, what sort of LtV are you looking at?
    I'm just a bit of a pessimist so always want to know the ifs and buts. 
    No reason why we should be refused, specially as the property is priced 50k below out AiP...

    We are looking at 85% LTV
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    soplum said:
    We are looking at 85% LTV
    Not a lot of scope for downvaluation, then.
  • soplum
    soplum Posts: 34 Forumite
    10 Posts
    AdrianC said:
    soplum said:
    We are looking at 85% LTV
    Not a lot of scope for downvaluation, then.
    What does that mean? (sorry for the silly questions)
  • Mickygg
    Mickygg Posts: 1,737 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    You have a MIP so that's fine as it shows you can get the mortgage. 
    Put the offer in. 3 weeks will be taken up by price negotiations, sales memo, solicitors details, starting searches. 
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