A newly engaged couple contacted us to arrange an agreement in principle (AIP) from a mortgage lender whilst they were searching for their first home. They hoped that the AIP would put them in good stead against other potential buyers when making an offer on a property. Also, they were keen to find a place of their own as quickly as possible as they had been living with parents and didn't want to outstay their welcome.
We constantly track how long it takes lenders to process mortgage applications and were able to suggest one that fitted their requirements. In this instance:
- The lender didn’t have a backlog of cases so would be able to process the application straightaway
- This lender instructs valuations on day one, instead of waiting for documents to be assessed – this is not always the case with lenders
- We have worked with this lender on numerous occasions so we were able to pre-empt its requirements, preparing documentation in advance
After a while, the couple found a 2-bed semi-detached house in Sevenoaks, Kent and put in an offer which was duly accepted. They then got in touch with us to make the formal application which we did the same day. The valuation took place just two days later and the following morning the lender issued the formal mortgage offer which allowed the couple to proceed with the purchase at near-record speed.
Property value: £371,000
Loan amount: £270,000
Rate: 1.45% 2 year fixed
Term: 30 years capital and interest
Lender arrangement fee: £999
Mortgage payment: £928 pcm
Property value: £475,000
Loan amount: £150,500
Rate: 1.89% 5 year fixed rate
Term: 30 years
Lender arrangement fee: £995
Mortgage payment: £550 pcm
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
12th December 2016