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Original poster

Mortgage applications

22 replies

lollypops321 · 28/12/2019 23:24

Good evening.

Need some advice as a first time buyer. Should I get a mortgage in principle or should I make an offer on a property and then get my mortgage after?

I roughly know the top end of what we could borrow and are looking at properties significantly less than this so unsure whether it's worth risking my credit score.

Help!!

OP posts:

youreajetalltheway · 28/12/2019 23:28

Get a broker - try unbiased.co.uk to find one, some don't charge any fees. I'm a mortgage professional who still used one last year, they will ensure that any credit searches carried out don't leave a footprint and that you apply to a lender who is suitable for you and will accept you. There are free online brokers, too, just google them.

Original poster

lollypops321 · 29/12/2019 09:32

So that would give us an idea of what we could borrow? I didn't know they could do it without affecting your credit score. Mines okay, but not the best so could do with it not getting worse haha

OP posts:

TrixchangeK · 29/12/2019 11:34

You'd need an Agreement in Principle before your offer can be officially accepted anyway, so as advised above see a mortgage broker for that first.

YappityYapYap · 29/12/2019 11:43

It's best to see a broker or advisor and get something in principle before making an offer. The first step is usually getting a mortgage in principle to see how much you can borrow then look around and find houses within that budget. The broker or advisor will tell you how long the offer in principle is valid for. Brokers and advisors usually don't charge you anything, they will get given a fee from the mortgage company for arranging the mortgage and they will also probably want you to buy life insurance which again, they will get a fee from the company for.

So book to see a broker, financial advisor or mortgage advisor

applepineapple · 29/12/2019 11:54

Just bought a property ( also FTB ) and would recommend Habito for an agreement in principle. Super quick and easy and without having to talk to multiple people which was a major plus for us.

Happygirl79 · 29/12/2019 12:00

Get an IFA who will arrange M I P
Will save you are fortune in the long run

Pilodowan · 29/12/2019 18:51

Definitely get an Mortgage Agreement in Principle first. The online calculators weren't particularly accurate for us and gave a bit of an unrealistic expectation of what we could actually afford to spend or borrow. A mortgage broker goes through all your outgoings and income and circumstances so that they can recommend the right lender.

When we put in an offer on the property we bought, the Estate agents wanted to see the AIP before they would even consider the offer.

Original poster

lollypops321 · 30/12/2019 08:18

Thanks for all the replies. When would you recommend getting a broker? When your ready to start making offers, or in advance so you know how much you can afford and need for a deposit?

OP posts:

TrixchangeK · 30/12/2019 08:41

I'd go to one now, see what the banks say they'd be willing to lend, and then crack on with your viewings/making an offer. It would be awful to see a house you love and then the AIP comes out at a lower amount than you'd need!

RacoonRocket · 30/12/2019 08:44

If you're reasonably financially confident and you are a bog standard employee paying tax PAYE, then you can easily do without a mortgage broker. We never used one. Just look on some mortgage best buy tables and look for the best rates for your LTV ratio. Then the main consideration is fixed rate or variable/tracker.

Rainbowhairdontcare · 30/12/2019 08:50

I can recommend you a lovely broker. She even.goes the extra mile.to.look at the property online and gives you a good idea if mortgage companies will be ok with it. We'd have to pull out of another property because our broker was useless and never really explained the situation with mortgages and this property in particular

Littlepickle90 · 30/12/2019 09:02

A mortgage in principle shouldn't effect your credit score ,it should however grant an indication of what you can borrow.

Additionally to put an offer in on a house you want the ability to act quickly which you would need the mortgage in principle for.

Good luck with the house hunting!

FlamingoAndJohn · 30/12/2019 09:06

I would always use a broker. No reason not to. Expert advise, some to fill out all the forms and find you the best deal - all for free. I cannot see why you wouldn’t.
Our mortgage advisor was great. He found us the best deal and then about two days before it was due to go through he found a better one and switched it.

Original poster

lollypops321 · 30/12/2019 09:30

Thanks. I was unsure whether to use one because I just assumed I would have to pay. But now I know that it's free we will definitely be getting one. Just wish it wasn't so hard to save. Bloody Christmas

OP posts:

Outnumbered99 · 30/12/2019 11:22

Would echo everyone else in saying use a local broker that won't charge you- good luck with the property hunting!

riverside277 · 30/12/2019 11:25

I had one in principle but it ran out a few weeks ago as I've been looking for months with nothing suitable, my mortgage advisor advised not to Re-do it until I want to offer on a property.

Asdf12345 · 31/12/2019 21:30

We didn’t use a broker and to the best of my knowledge a broker could not have saved us money unless anyone knows of a 5 year fixed rate under 1.69% on a 25% deposit. That said we had reasonably simple finances and were looking for borrow half what our AIP offered.

The estate agent never asked to see our AIP, all of that was done with the solicitor after our offer was accepted. They did ask a few probing questions about what we did for a living though and seemed to assume we had money coming out of our ears.

Asdf12345 · 31/12/2019 21:31

The idea of a broker not charging isn’t madness. Either you pay them upfront or you pay them via commission on a slightly higher rate. That’s how they make a living.

Asdf12345 · 31/12/2019 21:31

Is madness.

francienolan · 31/12/2019 23:00

Go to a broker. When you make an offer it will not be able to be accepted (nor the property marked as sold online) without proof of agreement in principle and proof of deposit.

FlamingoAndJohn · 01/01/2020 09:07

Our broker could get us a better deal than we could get on our own.
We didn’t pay him a penny. As I understand it, because I asked, he gets commission from the mortgage company.
It didn’t cost us anything because the deal we ended up with was better than if we had gone to that mortgage company directly. So even if his fee was part of that it still saved us money.

Outnumbered99 · 06/01/2020 11:49

Yes @Asdf12345 a broker will get paid a commission, which should be detailed in their terms of business and key facts documentation, (they have to earn money!), but some charge a fee on top of this as well. The ones that charge on top, sometimes up to 1% of the loan amount I have seen, are the ones I wouldn't recommend.

A broker earning a commission will still be competitive with the high street products and often beat them.

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