Offering asking price

[goldenflappy]

Hello all,

We are in a good position FTB and have seen a property we are interested in. Guide price is 115-125. Initially we were cheeky and offered 100. Estate agents said no we have an offer at asking price. So left it a few days and offfered 115. Estate agents have said there is an offer of this on the table already so want to see our agreement in prinicipal???? Is this normal??? I am quite happy to pay 115 but no more. Thanks in advance.

Yes, it's usual for them to want to see an agreement in principle. You can get one online (and you don't have to actually go with that lender for the mortgage).

Hello

Thanks for that, I've done the mortgage calculator but that isnt it is it?

No, you have to apply for a mortgage online. Most of the big banks will let you. They will email you (or you can download) the agreement in principle when you've made the application. It's pretty quick.

Right so when I've done that can I take some control with the agents?

The agent will be looking at your offer and trying to advise the seller whether you are in a better position than those who have made the existing offer. The agent might also use that information to try to get the other potential buyer to up their bid. The mortgage in principle is useful in the sense of confirming that a lender might be prepared to lend you the funds you need - that means that the seller should seriously consider your offer and weigh it up against the one which has already been made. It doesn't necessarily mean that the lender will actually make you a mortgage offer once the full application has been made, and it doesn't give you any kind of control with the agent - it's all in the seller's hands at the moment.

Applying for a mortgage in principle will usually show up on your credit file so it's sensible to find a mortgage deal which you think you may want to go with before obtaining one. If you are not prepared to pay more than £115k there is no harm in obtaining a mortgage in principle now - however, if you might have to pay more to secure the house you should ask whether your offer is going to be accepted before obtaining one. No point obtaining a MIP for x if you need to pay x plus y to buy the house.

just had the agent get back to us after forwarding the agreement in principal. Other buyer has upped their offer. we told them to give us a ring if it falls thru xx