Mortgage in principle

[Evamoda]

Hello,

First of all, thank you for giving me the opportunity to ask for your opinion.

About a year ago we were very interested in one house. We made an offer, got a mortgage in principle for the quantity we required but lost the house to somebody else. We haven't stopped looking but haven't seen anything we've wanted enough to put an offer on.

As I browse for properties I am not quite sure whether the MIP we got last year was the maximum we could borrow at the time, or the confirmation that we could borrow what we needed at the time (the value of the house minus the amount we decided would want to put as a deposit). Basically I am wondering whether if our circumstances have not changed we can only borrow that amount?

I am not sure this makes sense.

Any views would be appreciated,

Thanks!

[dancingqueen345]

I always find it a bit backwards with a MIP, in my experience you tell them how much you want to borrow as opposed to them telling you how much they'd lend, so they could well be willing to lend more.

A MIP usually doesn't last a year anyway so you'll need to get another one either way, and this time ask for more! They will just come back and say based on what you've told them, and based on X deposit, they'd be willing to lend you Y.

[Evamoda]

Thank you Dancingqueen,
I was worrying as I am not sure we can get what we want if we can only borrow that amount. Unless we put all our money towards a deposit, which would leave us with nothing..

I guess I should arrange a visit to a mortgage advisor soon :)

[dancingqueen345]

Yeah, you might be surprised!! I have just been through it in the last few months, and on about our 4th call with the mortgage advisor she just casually said 'oh you're probably eligible for a 95% mortgage', which obviously changes everything!!

Good luck!

[Evamoda]

Thanks! :)