Can borrower pre-qualify for mortgage before finding house?

[fever86]

Hi guys,

I posted something earlier. I was wondering if anyone can help.

I am looking to buy a property, however I would prefer to have a mortgage lined up first so I know how much I can borrow and monthly repayments etc..

Is this possible? or do I have to find a property before a mortgage can be arranged. I have seen a mortgage from HSBC fixed for 2 years at 4.99%. This for me seems too good to be true. The only draw back is the fee of £1500, which is not awful. Am I missing something?

Another question unrealted. When the news, papers etc.. state its not a good time to buy property. Is this not the best time to buy, especially for first time buyers, as the property prices are dropping?

Many Thanks

[Corinne Tuplin]

Dear Fever,

My personal opinion is this: it is not a good time to buy at the moment.

http://uk.reuters.com/article/personalFinanceNews/idUKNOA82698820080408

Kind regards,

CORINNE TUPLIN
www.proleagle.com

[jeffrey]

Hi guys,

I posted something earlier. I was wondering if anyone can help.

I am looking to buy a property, however I would prefer to have a mortgage lined up first so I know how much I can borrow and monthly repayments etc..

Is this possible? or do I have to find a property before a mortgage can be arranged. I have seen a mortgage from HSBC fixed for 2 years at 4.99%. This for me seems too good to be true. The only draw back is the fee of £1500, which is not awful. Am I missing something?

Many mortgagees (lenders) will issue a Certificate to an intending mortgagor (borrower). It certifies that the Borrower concerned has been financially checked and is approved as to status. This is one of the two main steps in any mortgage advance application; the other is the mortgage valuation (property-specfic).

[Colincbayley]

A decision in principal can be obtained from any lender before finding a property ( as Jeffrey has stated above ) however, in the current credit crunch you may find that the product you want ( 4.99% ) is withdrawn before you find your property.( A £1500 arrangement fee is not unusual in the current climate! )

As for a good time or not to buy, who knows, for every one person who says prices are going up, someone else will say they are going down.
If you are buying for yourself as a home, then I wouldn't worry too much about trying to time the market highs and lows.

Good Luck.

[natalie_c]

The 4.99% is being pulled on Monday or Tuesday as it was only available for a short period of time from First Direct when they withdrew due to overload. You can do decision in principles online though and print off a certificate but you could still be refused once payslips/bank statements are checked. If yu wanted to ensure you got the rate of 4.99 you would have to pay the 1499 to book the funds and you then have 6 months in order to draw the money down/complete

[tenant29]

You can get mortgage approved in principal at Halifax in 20 minutes . I remember they had a sign in window offering this service.