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Do lenders lend what they say they will.
Snookie12cat
Posts: 805 Forumite
When you get a DIP and it gives you max affordability, how likely is it this is what the lender will give you, if everything you told them about your outgoings matches up and there are no hidden surprises?
I ask as I am needing to borrowing close to the max affordability they gave me and I am worried they will not lend me this for some unknown reason when I actually apply, making applying pointless.
I ask as I am needing to borrowing close to the max affordability they gave me and I am worried they will not lend me this for some unknown reason when I actually apply, making applying pointless.
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Lenders will make a formal offer on the basis of the property you apply for a mortgage on.1
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I know that, but say the valuation is at the purchase price, and everything I told them about my outgoings match. Would I get the full amount offered in the DIP?Thrugelmir said:Lenders will make a formal offer on the basis of the property you apply for a mortgage on.0 -
No, a decision in principle means they might be willing to lend you that based on lots of variables.0
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Thats annoying - I dont want to go through the hassle of a hard search etc if they might not lend me enough purchase the property I need.lookstraightahead said:No, a decision in principle means they might be willing to lend you that based on lots of variables.0 -
That's why a broker is a good idea.Snookie12cat said:
Thats annoying - I dont want to go through the hassle of a hard search etc if they might not lend me enough purchase the property I need.lookstraightahead said:No, a decision in principle means they might be willing to lend you that based on lots of variables.You're right every hard search leaves a marker.But I've always thought DIPs are a bit rubbish. It's a big like asking your boss for a pay rise and they respond with "potentially".
also of course you might fit the bank's criteria, but the property you want doesn't.3 -
I did find this one through a broker and he seemed confident at the figure quoted, but then again I am a control freak so find it hard to trust what they tell me 🤣lookstraightahead said:
That's why a broker is a good idea.Snookie12cat said:
Thats annoying - I dont want to go through the hassle of a hard search etc if they might not lend me enough purchase the property I need.lookstraightahead said:No, a decision in principle means they might be willing to lend you that based on lots of variables.You're right every hard search leaves a marker.But I've always thought DIPs are a bit rubbish. It's a big like asking your boss for a pay rise and they respond with "potentially".
also of course you might fit the bank's criteria, but the property you want doesn't.
Could the broker get me closer to that figure than I could myself?0 -
Our broker managed to get us an offer bigger than our DIP.1
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That's quite amazing 🤣Mahsroh said:Our broker managed to get us an offer bigger than our DIP.0 -
It's because the proper checking and working out is done after you require a mortgage. The actual property loan is part of the agreement, which is where the valuation comes in, and your LTV.Snookie12cat said:
That's quite amazing 🤣Mahsroh said:Our broker managed to get us an offer bigger than our DIP.1 -
Different lenders will give you different offers as they treat your income and outgoings differently. The higher offer might mean a slightly higher interest rate though, but not always. A good broker makes all the difference as they know where to get you what you need.Initial mortgage bal £487.5k, current £238k, target £122k (quarter way!)
Mortgage start date first week of July 2019,
Mortgage term 23yrs(end of June 2042🙇🏽♀️),Target is to pay it off in 10years(by 2030🥳).MFW#10 (2022/23 mfw#34)(2021 mfw#47)(2020 mfw#136)
£12K in 2021 #54 (in 2020 #148)
MFiT-T6#27
To save £100K in 48months start 01/07/2020 Achieved 30/05/2023 👯♀️
To save £100k in 60months start 01/01/2027
Am a single mom of 4.Do not wait to buy a property, Buy a property and wait. 🤓1
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