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  • Mortgages & Finance

    When to get another agreement in principle

    Hi,

    I'm about to put in a cheeky offer for a buy to let,

    Its on for offers OVER £105,000 and i will be offering mabey around £97.

    I was persuaded by the estate agent to see their in-house mortgage advisor, with my own deposit of £25,000...

     For a £75,000 mortgage..they came up with..

    2.54% fixed for 5 years

    £158.75 per month on interest only basis

    £300 survey fee

    £250 mortgage application fee

    £299 mortgage arrangement fee (payable after exchange of contract).

    I dont know, but I might be able to get a better one.

    Thing is do i go my other broker now or wait till after I offer has been accepted or just put in, as my other last broker said to come back to him when i had a property i wanted.

    I have a feeling the agents will want to push quickly to get funds in place, also as part of my offer i will be saying I have already got an agreement in principle from them as they know so I would be able to proceed quickly.

    It might be rejected yet, and they might want a bigger offer which i might be willing to do, but i would be back to square one as far as getting the mortgage agreed and go through it all again!.

    So what's the procedure do i see my other broker now or wait till offer accepted?

    What do you think of the chances of my offer?

    Any thought and advice guys.

    Thanks

    Aaron.

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    You can get an agreement in principle online in about 5 minutes, from what i’ve seen it’s a VERY loose promise from the lender.

    You will still have to have your finances and credit checked in more detail before a formal offer is given.

    Estate agents will always want to move fast to get their payments, however the time on a deal normally lies with the solicitors. 

    In summary - Bargaining power change is low, no harm in getting several mortgage examples after agreeing a price and going from there.
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    Omega Property (Formerly SBS Ltd.)

    I am not professionally trained to give advice, generally posting for the benefit of the community or my own personal development.


    As an after though, look for a broker that is whole of market if you are going that route for finance.
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    Omega Property (Formerly SBS Ltd.)

    I am not professionally trained to give advice, generally posting for the benefit of the community or my own personal development.


    They had all my bank and savings details and my credit rating is excellent, so i think most things are ready to go apart for solicitors of course.

    Thanks.

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    Hi Aaron

    I would certainly use the AIP you have to get your offer accepted, but absolutely then shop around to see if you can improve on the rate.  However, I have just done a quick search and looking at a cost over 5 years taking into account the fee and interest rate, it looks to me like the agent has already quoted you the best option on offer......

    Good luck with the purchase!

    Jeni

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    Mortgages For Business is a commercial partner of Property Tribes.

    Email: propertytribes@mortgagesforbusiness.co.uk

    Telephone number: 0345 415 3501

    Well i'm no expert but it did seem like a good deal, so it's looking good.

    Thanks for the search, much appreciated.

    Think I will have a quick look around after/if my deal is accepted.

    Fingers crossed.

    Thanks.

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    Its no problem - if you want us to reference options for you before you sign up, please do feel free to drop me a line - jenib@mortgagesforbusiness.co.uk.

    Jeni

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    Mortgages For Business is a commercial partner of Property Tribes.

    Email: propertytribes@mortgagesforbusiness.co.uk

    Telephone number: 0345 415 3501

    The 2.54% deal is with BM Solutions and is indeed an excellent (low overall cost) deal for you.

    They have a lower interest rate at 2.26%, but that one has a £2295 fee!

    The good news is that BM Solutions only do 'soft footprints', so even if you have another AIP (with them), this shouldn't affect your credit score / rating at all.

    This is one of the first time ever that I have seen an estate agent mortgage salesperson recommend (what is seemingly) the right product.

    What they might not have discussed with you though (which is where the difference between a salesperson, and a professional Adviser such as Property Tribes Financial Services comes in), is that we recognise that every mortgage or loan is simply just a debt, and so we have a proper discussion about debt repayment strategies, flexibility of arrangements, wills and estate planning and ensuring your policies are in trust too.

    So, stick with the BM Solutions deal (and maybe just tweak the numbers if you have to, because you won't get £75k on a purchase price of £97k as this exceeds 75%LTV which is the maximum that the 2.54% deal allows) and then for a professional and comprehensive personal estate planning service, call the Team at PT Financial Services anytime.



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