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Mortgage In Principle

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My wife and I are seriously contemplating putting an offer in on a house; we've been holding off for years on the strength of what the wise folk on this site have said, but we've finally decided that the time may be right to put in some cheeky offers. We have seen a house for sake at £150k that we like; as we're first time buyers it's all new to us so we're not entirely sure how to go from here!

The agent selling the house has asked to see our mortgage in principle before passing on our offer to the vendor. We have a 35k deposit but dont have an MIP yet, and I'm not sure how much we should ask our mortgage provider for. Do we:

1) Get an MIP for about £100k (plus our deposit) which is our starting offer, risk the offer being rejected and then have to go back to our mortgage provider to get a higher MIP

or

2) Get an MIP for about £110k (the most we would want to borrow), show that to the estate agent and then them immediately know the extent of our budget and therefore hold out for the full amount.

Having never seen an MIP i dont know what information is on it - i'm sure i'm not the only person who has wondered this! Thanks in advance :)

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My wife and I are seriously contemplating putting an offer in on a house; we've been holding off for years on the strength of what the wise folk on this site have said, but we've finally decided that the time may be right to put in some cheeky offers. We have seen a house for sake at £150k that we like; as we're first time buyers it's all new to us so we're not entirely sure how to go from here!

The agent selling the house has asked to see our mortgage in principle before passing on our offer to the vendor. We have a 35k deposit but dont have an MIP yet, and I'm not sure how much we should ask our mortgage provider for. Do we:

1) Get an MIP for about £100k (plus our deposit) which is our starting offer, risk the offer being rejected and then have to go back to our mortgage provider to get a higher MIP

or

2) Get an MIP for about £110k (the most we would want to borrow), show that to the estate agent and then them immediately know the extent of our budget and therefore hold out for the full amount.

Having never seen an MIP i dont know what information is on it - i'm sure i'm not the only person who has wondered this! Thanks in advance :)

I am not sure this needs a bump but here it is. I have exactly the same question.

I too have seen a place I like but dont really know what the situation is regarding getting the MiP and how this works regarding putting offiers in.

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My wife and I are seriously contemplating putting an offer in on a house; we've been holding off for years on the strength of what the wise folk on this site have said, but we've finally decided that the time may be right to put in some cheeky offers. We have seen a house for sake at £150k that we like; as we're first time buyers it's all new to us so we're not entirely sure how to go from here!

The agent selling the house has asked to see our mortgage in principle before passing on our offer to the vendor. We have a 35k deposit but dont have an MIP yet, and I'm not sure how much we should ask our mortgage provider for. Do we:

1) Get an MIP for about £100k (plus our deposit) which is our starting offer, risk the offer being rejected and then have to go back to our mortgage provider to get a higher MIP

or

2) Get an MIP for about £110k (the most we would want to borrow), show that to the estate agent and then them immediately know the extent of our budget and therefore hold out for the full amount.

Having never seen an MIP i dont know what information is on it - i'm sure i'm not the only person who has wondered this! Thanks in advance :)

Its probably worthwhile getting an MiP just so you can answer affirmatively. They want to know one of two things - whether you can proceed at all, or how much they can squeeze out of you. The former is to your advantage, the latter is not. You could of course provide the EA with a photocopy of the MiP agreement with the amount agreed blanked out.

Having said that, my understanding is that the agent must, by law, pass on all offers unless he has been specifically instructed not to pass them on under certain conditions. If the EA is being an ass and tries to hold out for your precise financial details and if the house is owner occupied or you can find out where the owner lives, you can always bypass the agent and make the offer direct to the owner and point out that the estate agent was doing his best to prevent you making said offer.

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we are in the same position (same money levels too) but step ahead that we booked our mortgage.

I am on the site since long ago and found many answers and knowledge, thank you. Been on the rightmove for years with the helpful bee. When we started seriously looking around and found a suitable house my wife to the chosen bank and in less than 30 minutes she got AIP for the offered price. As that house went to someone willing to part with more than it deserved that failed but now we found this other property that suits us. offer accepted and another appointment to fill the forms, one week for the underwriters to decide, then second meeting last saturday where the actual money are booked and available for 6 months. there you pay your booking fees (do not add them to teh mortgage even though it's tempting), Yesterday the valuator rang to collect his fee and the report should be ready by end of the week....so far so good.

As others said get the aip but blank out the sum. The bank can put the property detail in the AIP so that should show the agent it is enough,

good luck to you.

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Just wondering ... more knowledgeable folks shoot me down if I'm totally off ...

If you go ahead and buy, you'll want a conveyancer. Might it be an option to find a solicitor on the basis of act for me when I buy, demonstrate your means and a maximum mortgage offer-in-principle to your solicitor, then just refer agents to [solicitor] just to confirm you have the means?

Advantages(?):

- agent knows he's not going to get away with bullying your solicitor.

- having a solicitor might suggest that you're serious.

Drawbacks:

- it'll cost you even if you don't end up buying!

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Just wondering ... more knowledgeable folks shoot me down if I'm totally off ...

If you go ahead and buy, you'll want a conveyancer. Might it be an option to find a solicitor on the basis of act for me when I buy, demonstrate your means and a maximum mortgage offer-in-principle to your solicitor, then just refer agents to [solicitor] just to confirm you have the means?

Advantages(?):

- agent knows he's not going to get away with bullying your solicitor.

- having a solicitor might suggest that you're serious.

Drawbacks:

- it'll cost you even if you don't end up buying!

This is a great post. I would add - some solicitors will act on a no sale no fee basis.

However, many of them are corporate conveyancing centres DON"T USE ONE OF THEM!

Take Porca's advice and go no sale / no fee by all means, but don't use a solicitor unless you've shaken their fleshy hand.

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  • 276 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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