Mortgage in Principle - low and will I get it ?

Exodi

FrancisBegbie said:
Im fine with the £100k mortgage in principle offer 

that’s all I need literally £100k so that’s fine 

my questions are - shall I transfer the credit card debt to interest free somewhere else and extend my interest free time so I can continue to pay it off ?

will I get approved of a mortgage in principle - is that guranteeed?

I'm confused now what your question is?

In your OP you asked why the AIP was so low (which we've interpreted as being an issue hence why you asked) and whether you would get an agreement in principle.

Re-reading the OP I see you mentioned you've already been accepted in principle and you've now said £100k is fine and all you need?

To your later question - you're not guaranteed to get the mortgage off a decision in principle - for example, if some of the information you submitted turned out to be incorrect or their internal valuation of the property down-values the house and this moves you up an LTV band if you can't make up the shortfall.

If you have an interest fee period until summer 2026 then no sense doing anything now - however this can be a slippery slope and we see many people fall into unmanageable debt off the back of 0% interest deals, that suddenly dry up and they're faced with 24.9% APR on tens of thousands of pounds.

FrancisBegbie

Exodi said:

FrancisBegbie said:
Im fine with the £100k mortgage in principle offer 

that’s all I need literally £100k so that’s fine 

my questions are - shall I transfer the credit card debt to interest free somewhere else and extend my interest free time so I can continue to pay it off ?

will I get approved of a mortgage in principle - is that guranteeed?

I'm confused now what your question is?

In your OP you asked why the AIP was so low (which we've interpreted as being an issue hence why you asked) and whether you would get an agreement in principle.

Re-reading the OP I see you mentioned you've already been accepted in principle and you've now said £100k is fine and all you need?

To your later question - you're not guaranteed to get the mortgage off a decision in principle - for example, if some of the information you submitted turned out to be incorrect or their internal valuation of the property down-values the house and this moves you up an LTV band if you can't make up the shortfall.

If you have an interest fee period until summer 2026 then no sense doing anything now - however this can be a slippery slope and we see many people fall into debt off the back of 0% interest deals, that suddenly dry up and they're faced with 24.9% APR on tens of thousands of pounds.

Sorry to be vague my apologies 

the question was really I appreciate I have £18k debt the impact that it’s had - when should I shift the debt to another interest free deal and it’s become clear that  I should definitely do that after I’ve secured the home and I own it 

the other question was why was my MIP so low but it’s clear it’s because of the £18k debt 

FrancisBegbie

Hi apologies 

I think I have this wrong 

I have only asked to lend 100k maybe that’s the reason it came back at 100k obviously because I didn’t ask for anymore 

I have just done a mortgage calculator and it says I should be able to get 200k but I obviously don’t need that 

so all good. 

Exodi

Many mortgage calculators tell you how much they'd lend you, even if you're only asking for less.

I got ~£150k from Lloyds with your details, the difference from how much you might theoretically be able to borrow (~£200k, 45*4.5) likely being due to consideration for debt repayments.

I'm surprised a lender would offer the full £200k considering the debt (unless it didn't prompt you for it).

Nonetheless, it's academic as you mentioned you only need £100k.

Good luck with the house purchase!

FrancisBegbie

Exodi said:

Many mortgage calculators tell you how much they'd lend you, even if you're only asking for less.

I got ~£150k from Lloyds with your details, the difference from how much you might theoretically be able to borrow (~£200k, 45*4.5) likely being due to consideration for debt repayments.

I'm surprised a lender would offer the full £200k considering the debt (unless it didn't prompt you for it).

Nonetheless, it's academic as you mentioned you only need £100k.

Good luck with the house purchase!

Thank you you’re been really nice and helpful