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  • FIRST POST
    • dmb123
    • By dmb123 7th Aug 18, 6:53 PM
    • 1Posts
    • 0Thanks
    dmb123
    Bit confused about base rate change and general mortgage process.
    • #1
    • 7th Aug 18, 6:53 PM
    Bit confused about base rate change and general mortgage process. 7th Aug 18 at 6:53 PM
    Hi all, FTB here.

    Near to where I am currently renting a few flats have sprung on the market, I have been saving for a while now and have 20k saved up - but though I have previously looked at properties, moving hasn't been on the cards for a while.

    Last time I tried looking at properties (probably 9 months ago now) I was refused to look round without a MiP by an estate agent (and to be fair I wasn't really in a position to make an offer on anything I just wanted to look at what I could get for the money, a bit more than just looking at pictures online) so I was effectively turned away and didn't try looking with anyone else, just carried on saving.

    I was thinking of doing the same with these flats, and so I went to Habito who provided me with a MiP, in the knowledge that I intend on buying something in the next few months. I went and looked round the flats and actually really liked one of them so I decided to make an offer.

    As far as I am aware a Mortgage in Principle is not a commitment to take out a mortgage with that lender / broker and you can potentially change that to someone else, when I received my MiP from Habito, I had not received any actual rates by that point. I presume this is correct but I guess my first question I have is, is this assumption correct?

    Following receiving the rates from Habito, I went online and looked for what else was available to me through Compare the Market, something with a similar rate came up from Skipton Building Society, so I rang them to get more info and arrange to speak to someone in regards the product I had found on the site. The number I called was a generic one on their website (not a branch number) for mortgage applications. When I got through, I'm not sure how we got onto this, but the topic of me already having an MiP with Habito came up, and the guy one the phone said that if I was to proceed with them it would conflict with Habito, implying I was commited to go with them, and that also it would trigger another credit check, and Habito will have already triggerd a credit check... It was also mentioned that the base rate of interest had gone up the previous day, and that rates were pretty likely to change between then and the time I could arrange an appointment. He basically said I should just go back to Habito and use them (which seemed slightly odd to me to be honest).

    Going back to Habito they say they haven't run any credit checks yet, but the rate has changed and my quoted rate could also change too. They're now pushing for me to process my application ASAP.

    I'm a bit shaken up by all this, I'm probably being over anxious, but I am afraid I am going to mess something up and I am not sure who to turn to really. I am conscious the market is now in flux because of this rate change, and so lenders may want to push back on people wanting to take out fixed rates products that were thought up prior to this change. Also people like Habito are effectively brokers that will want to earn the commission they make from each mortgage they sell... The other thing I am worried about is the seller getting frustrated with me (though this is likely all in my head, it has only been two weeks, it might not actually be an issue that I haven't actually got anything sorted yet.. but i am not sure)

    My other concern is that following the comment from Skipton, I have logged onto Noddle to check my score on there, and it has notched up a few searches (performed by Habito, CtM and some other sites I have obviously used to look at rates), and it is 3/5 and about bang on 'average for the area'. This is lower than I remember it being last time I looked, and I am worried these searches are the reason why... I'm also worried about doing anything more in case that reduces my score further and thus my chances of being accepted...

    What would be your advice for someone in a position like me currently FTB'er following this rate change, part way through an offer?
Page 1
    • LRmortgage
    • By LRmortgage 7th Aug 18, 6:59 PM
    • 21 Posts
    • 5 Thanks
    LRmortgage
    • #2
    • 7th Aug 18, 6:59 PM
    • #2
    • 7th Aug 18, 6:59 PM
    You have a lot of questions, that is understandable considering you are a first time buyer.

    My advice would be to find a local broker, not an online one that you can meet face to face or at least have a proper chat on the phone who can explain everything to you.
    • cooltt
    • By cooltt 7th Aug 18, 9:01 PM
    • 598 Posts
    • 352 Thanks
    cooltt
    • #3
    • 7th Aug 18, 9:01 PM
    • #3
    • 7th Aug 18, 9:01 PM
    Stop what your doing for starters until you understand the application process exactly.
    • ACG
    • By ACG 7th Aug 18, 9:33 PM
    • 17,326 Posts
    • 9,181 Thanks
    ACG
    • #4
    • 7th Aug 18, 9:33 PM
    • #4
    • 7th Aug 18, 9:33 PM
    Habito wont have done a full credit check it will just be a generic letter - based on what you have said, we can help.

    Skipton are like most lenders erring on the side of caution and rather than risk doing another credit check are effectively referring you back to "your" broker.

    Rates do change daily so in my opinion there is little point in doing credit checks until you are ready to be serious about buying as rates do change daily so the best lender today may not be tomorrow. If you had pushed it with Skipton, they would have backed down I imagine and allowed you to proceed.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Habito
      Verified User verified user
    • By Habito Verified User verified user 14th Aug 18, 9:37 AM
    • 1 Posts
    • 0 Thanks
    Habito
    • #5
    • 14th Aug 18, 9:37 AM
    • #5
    • 14th Aug 18, 9:37 AM
    Hi dmb123,

    Posting from Habito - I came across your post during routine monitoring for our name.

    I hope you don't mind us responding on here, but we wanted to offer you a call from a senior mortgage adviser if you still have any concerns or questions around the rate rise and your options. We pride ourselves on giving free, unbiased and qualified mortgage advice and if we see that a customer can get a better deal by going directly to a lender, we'll always recommend that route. So, there shouldn't be a conflict between us or any other lender or broker and you're never committed to going with us if you're not happy to.

    If you would like us to answer your questions in more detail - please log back into your account with us, send us a message and we will do our utmost to explain better all your options.

    Best wishes,
    Andrea (Habito customer services)
    Last edited by Habito; 14-08-2018 at 9:39 AM.
    Verified Company
    I am a verified representative of Habito. MSE has given permission for me to post in response to queries about the company so that I can help solve issues. You can see my name on the Verified Companies list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE.
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