Mortgage approved!

Last Monday, Habito contacted me to advise that Nationwide had agreed our mortgage in principle – subject to valuation. Progress!

The valuation was scheduled for last Thursday (Valentine’s Day) and was being done at the same time as a RICS HomeBuyer Report that I had commissioned. We weren’t expecting to hear anything until this week, but the surveyor called me shortly after his inspection. It was not good news.

Although he liked the property in general, there were a number of issues he wanted to advise me of. Things to do with the external condition of the building, lack of parking space and kerb appeal, the poor state of the windows and a few other issues. His general feeling was that the price we had agreed to pay (£225K) was too high and that he would have expected the property to be in immaculate condition for that sort of money. When I asked him what he thought it was worth, he suggested in the region of £200-£210K. Oh dear.

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Mortgage shenanigans

Following on from my bold decisiveness when selecting a solicitor, next up to sort was the dreaded mortgage application.

I had already received a few draft mortgage illustrations online, one of which resulted in a basic Decision in Principle (DIP) document being sent to me. This came in useful as after having my offer accepted last week, the estate agent immediately wanted to see proof of funds. This DIP document was accepted for that purpose. But the figures on it needed to be adjusted and I wanted a more solid comparison, so decided to consult my friend again, Mr Google.

Last time I took out a mortgage (back in 2010), I met with a local broker to help find the best deal available. I had a really positive experience and ended up with a stonkingly low rate deal from Barclays. So this time around I thought I’d try the broker approach again – but decided to add a modern twist.

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