Any mortgage type folk out there?

[nicky.mattsson]

Hi all

Long story short I have found a place I am interested in, its a new build and I have the deposit I need. I am not a first time buyer and I have been given an agreement in principle.

The thing is the developer wants £1000 to secure the place and if I do not get the mortgage offer and it falls through I will loose £500, it may not seem like a lot of money but to me it is.

The question really is does an agreement in principle involve a credit check and does it basically mean I WILL get the offer as long as I have been honest with the lender etc.

Someone put my mind at rest for me....

Cheers

[nammynake]

A mortgage promise should have included a credit search and so long as you provided the correct details such as your credit commitments etc, you should be fine. One key step between a mortgage promise and actually being offered the loan is a satifactory valuation, to show that the property is worth what you're paying for it/they are lending you. The lender has to protect themselves in the event that you default and they have to repossess and sell the home.

[scotal]

[quote=nicky.mattsson]The question really is does an agreement in principle involve a credit check and does it basically mean I WILL get the offer as long as I have been honest with the lender etc.
/quote]
In a word no.

An aip will iinclude a credit check, so from that point of view you should be ok, as long as you can substantiate what you've told the lender so far.
The AIP is subject to valuation, so if they don't agree with the value of the property or the construction type, you could find yourself losing that offer.
Some lenders also have funny attitudes to new build.

[nicky.mattsson]

Thank you very muchly. I feel a tad better about it now, I have only been honest with them up until now so i should be ok.

Now then, insurance for a Freehold Coach House, that is prooving to be a tad difficult too.....