Free Mortgage Agreement In Principle From Over 50+ Lenders
We will compare over 50 different lenders to help find you the best deal
Exclusive 2 year fixed rate mortgage with a minimum deposit of 40%
Representative example: A mortgage of £100,000 payable over 25 years. Initially on a fixed rate for 26 months at 1.19% and then on Santander’s standard variable rate of 4.49% (variable) for the remaining 274 months would require 26 monthly payments of £385.54 and 274 monthly payments of £540.06. The total amount repayable would be £160,815.48 made up of the loan amount plus interest (60,815.48) The overall cost for comparison is 4.19% APRC representative.
Do I need a mortgage “Agreement in Principle” or can it damage my credit rating?
Q: I am starting my search but want to know whether I need a “mortgage in principle” as I hear conflicting things. Some people say I need one, including an Estate Agent I’ve just been to see. But I have also heard they are time limited and getting another one can effect my credit rating. What do you advise I do?
An ‘agreement in principle’ (AIP), ‘decision in principle’ or ‘mortgage in principle’ are all terms that refer to much the same thing. A lender will take some basic information and perform a credit search and credit score before coming up with a figure that ‘in principle’ it would be able to lend.
That can be useful for borrowers that are worried whether their credit history will be strong enough to meet the lender’s requirements and will also give them some comfort as to what they may be able to borrow. An estate agent is bound to like the idea because they can see whether the prospective buyer will be able to secure a mortgage.
However, an agreement in principle doesn’t give any guarantees over what size of mortgage may be offered or even if they will lend at all. Once a full mortgage application is made the lender may start looking in more detail than the AIP went into and questioning documentation and make up of income more closely, all of which could ultimately lead to a different decision.
Eddison Wells provide expert mortgage advice to customers in Manchester looking for a mortgage. As mortgage advisors, we use our industry experience and knowledge to find the best possible deal for your family by checking the many available options. If you are searching for a mortgage loan in Manchester, book a free, no-obligation appointment with one of our mortgage brokers today.
Covering both personal and commercial mortgages in Manchester, our professional brokers provide a range of services, including remortgaging and buy-to-let support, in addition to expert advice for first time buyers.
To request a call back at a suitable time for you, or to book an appointment with one of our Manchester based mortgage brokers, simply fill in the contact form below.
First Time Buyer
With so many factors to consider it can be difficult to know where to begin when looking for your first mortgage.
There are a wide range of providers and mortgages across the market providing a vast selection of mortgages to choose from, and useful though it may be to have plenty of choice, it can leave you feeling completely daunted and confused.
You are not limited to just mortgages designed for first time buyers. Depending on your circumstances we will recommend the best mortgage for you from the wide range of mortgages on the market for house movers, such as the lowest fixed rate mortgages or base rate tracker mortgages.
1. Find out how much you can borrow.
The first thing to do when you are looking to buy a home is find out how much you can borrow. The best way to do this is to talk with a mortgage advisor, who will be able to give you an idea of how much you can realistically borrow, based on factors such as your income, outgoings, credit history, and several other factors.
2. Apply for your mortgage.
After discussing your available options with your advisor, and deciding on a mortgage you’d like to take, it’s time to apply for the mortgage. Again, it is better to do this through a broker, as they usually have relationships with the lenders. Lenders often charge a fee at this stage, however, applying through a broker means you don’t pay until your mortgage is completed.
3. Mortgage approved! (Approval in Principal)
Congratulations, you’ve been approved for your mortgage. At this point the lender will give you an ‘Approval in Principle’ (AIP), stating that they are willing to lend to you based on the circumstances outlined in your application. Now, you are ready to start the search for your property.
4. Search for your future home.
Now that you have your AIP you are ready to make offers on properties up to the agreed amount. At this point you are now ready to begin viewing properties.
5. Make an offer.
Once you’ve found the property you’d like to purchase, it’s time to make an offer. You do this through your estate agent, giving them the details of your AIP. The estate agent will then begin the process of checking the property. This is often the lengthiest stage of the buying process, as there can be quite a bit of legal and paperwork for the estate agent to process, as well as potentially waiting for third parties, such as the seller. Provided that there are no issues with the legal work, and the seller accepts your offer, your mortgage will complete.
6. Mortgage complete!
This is the final stage of the buying process, this is the point that you would pay your broker fee, and any other fees to other parties involved. Typically at this point you will pay, your deposit, broker fee, agency fee, solicitor fees, and stamp duty, but don’t worry, you will be made aware of what costs to expect by your advisor very early in the process.
7. Happy new home - time to move in.
Congratulations! You’re now a home owner. It’s time to pick up your keys and move into your new home.
Your mortgage may have been the best deal for your circumstances at the time but is it still performing as well as it could?
Remortgaging is a good way to escape high variable or fixed interest rates and more and more UK homeowners are moving their mortgages to save money. Even if you have just come out of a special deal and are obliged to pay a penalty if you change mortgage, do not be deterred, re-mortgaging often reduces your monthly mortgage payment enough to still save you money in the long term.
As well as reducing your monthly payments, you can also use remortgaging to release the equity that’s built-up in your property over time. If you have owned your property for several years, it could be worth more than your outstanding debt therefore taking out a larger mortgage could release some extra cash. This could be spent on home improvements, a new car or a luxury holiday if you like.
When you re-mortgage, you are essentially replacing your existing mortgage loan with a new one, shifting your debt from one mortgage lender to another. There are thousands of remortgages available across the UK morgage market and Eddison Wells will take into account what different mortgage lenders are offering at present and find the best remortgage deal for your new circumstances.
Buy to Let
A buy-to-let mortgage (also known as an investment mortgage) is designed for borrowers who want to let their property out to a third party (i.e. tenants).
More and more people are investing in property as a long-term opportunity to make profitable returns, and as a way of securing finance for their retirement. There are now plenty of competitive buy to let mortgage deals around that are specifically aimed at the buy-to-let market, Eddison Wells are here to find the best available deal tailored to your circumstances.
You will be required to put down a deposit for buy to let mortgages and this will be typically larger than for a standard residential mortgage – it will likely be 15-25% of the property’s value.
In addition, mortgage lenders will often assess buy-to-let mortgages on the earning potential of the property (i.e. the rental income) as well as normal income. The rental income of the property will usually need to be 125-130% of the monthly mortgage repayments.
If you are already paying your mortgage on your current home and you are moving home you can often move (port) your existing mortgage to your new home, which is possible with many lenders, or you can begin a new policy and repay your current mortgage (as well as any early repayment fees).
No matter how much you are able to save there will be options available to you but these will all depend on your individual circumstances. To discuss what choices are available to help you get on the housing ladder, you can speak to Eddison Wells by calling us on 0800 808 9981 – or request a call back.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Consultation is absolutely free and no-obligation. We charge a brokerage fee of upto 1% upon acceptance of your mortgage application, a typical fee is 0.3%.
Request a Call Back
Would you like to speak to one of our financial advisers over the phone? Just submit your details and we’ll be in touch shortly. You can also email us if you would prefer.
Why Eddison Wells?
Here at Eddison Wells, our core ideals of value, and transparency permeate everything we do. As advisors we a aim to establish long-term relationships with our customers. With the mortgage market changing daily, and many offers only available directly through brokers, or for limited times, we aim to find the best deals available to you.