Buying overseas is no longer simply about ‘Location, Location, Location’. Now more than ever ‘Affordability, Affordability, Affordability’ matters. Before you do anything, make sure you can borrow the money to buy your dream home.
What’s an Approval in Principle?
At a time when securing a mortgage is no longer such a given, it’s vital that you determine how much you can afford before embarking on the purchase process. An ‘Approval in Principle’ (AIP) will do just that - it will tell you exactly how much you can borrow and what price range you can realistically consider when conducting your property search. And it will avoid potential disappointment later on in the buying process, if you’ve got your heart set on a property which is simply beyond your means.
Put yourself in a stronger buying position
An AIP will also put you in a much better position with agents and developers and prove to them that you’re a serious buyer. Over recent months, the conversion rate at which overseas property developers have converted sales enquiries to a completed purchase has decreased significantly. Often, this has been due to potential buyers failing to secure the funds they simply presumed would be available to them. They need, for example, to be aware of the likely Loan to Value (LTV) obtainable on a mortgage, as this determines the deposit required.
It’s no surprise, therefore, that agents and developers will deal with someone who has an AIP far more seriously.
Get your mortgage Approved in Principle
Our Mortgage partners can get you an approved in Principle (AIP) certificate which shows we can secure the finance for you to go ahead, putting you in a stronger position with sellers. This means that you can start looking for a property safe in the knowledge that, based on your personal circumstances and disclosure (and subject to the usual small print), you’ll be able to secure the required finance to buy it.
It’s tangible evidence that you can take along when house hunting and it can also lead to your application being fast tracked once you’ve chosen your dream home.
Talk to BD Wealth Management about innovative ways to own property