Another mortgage question

[Teaandtoast1]

Hello. I've heard conflicting advice. I hear that if you put an offer in on a house you are asked if you have a mortgage in place (we were asked this when we offered the other week, didn't get it though on sealed bids) but I've also heard you can't get an offer till you know the house you are buying.

So what comes first? House offer or mortgage?

If it's mortgage they only last so long don't they and doesn't it affect your rating if you keep doing them?

Thanks.

Up until 26.4 you could get an agreement in principle before finding a house. Now you have to find a house before you can make the mortgage application.

Yep we have had to find the house before arranging the mortgage.

You can have a mortgage in principal but not have a mortgage agreed until you have an offer accepted on a house and surveys ect done. I wish the idiot I bought my house off could have understood this instead of ringing me virtually every day asking why we didn't have a mortgage agreed before making the offer.
Oh another tip, tell the agent not to pass on your contact details because you may be buying a house from someone who has no idea about what's socially acceptable!!!

You can have a mortgage in principal but not have a mortgage agreed until you have an offer accepted on a house and surveys ect done. I wish the idiot I bought my house off could have understood this instead of ringing me virtually every day asking why we didn't have a mortgage agreed before making the offer.
Oh another tip, tell the agent not to pass on your contact details because you may be buying a house from someone who has no idea about what's socially acceptable!!!

You can have a mortgage in principal but not have a mortgage agreed until you have an offer accepted on a house and surveys ect done. I wish the idiot I bought my house off could have understood this instead of ringing me virtually every day asking why we didn't have a mortgage agreed before making the offer.
Oh another tip, tell the agent not to pass on your contact details because you may be buying a house from someone who has no idea about what's socially acceptable!!!

Sorry didn't mean in principle I meant you can find out from a mortgage arranger how much you can borrow

Thanks. That's what I though. We've seen the advisor so have worked out what we can borrow. Just made me doubt myself when the EA asked if we have a mortgage in place.

Thanks. Makes sense now.

as financial says the rules have changed lasr month so there is still a lot of confusion. You would think estate agents would be aware though.

It's impossible to have an actual mortgage offer in place before you've actually found somewhere, as the bank/building society would need to know exactly what you're paying, and do a valuation survey. They can't do this on a hypothetical property.

Ditto a 'mortgage in principle'. This is only formally possible if you know exactly how much you will be paying for the property. You can get a good idea from the mortgage company about what you can borrow etc beforehand, as you have.

We spoke to our provider early on before we started househunting. They gave us an idea of what we could get based on our income etc. They said to call them as soon as we found a house, which we did. Then we went through the application process. It was agreed, the offer came through, and then the valuation was done.