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When to Start Full Application for Mortgage

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Hi

I am a FTB here.......had offer accepted and ball started rolling. Also have an AIP The problem is that the vendor is still looking and has not found anywhere.

I was wondering if I should start with the full application with my mortgage lender. There is a 999 fee (150 non refundable). So I pose a risk of stumping up £150 fee if the vendor cant find anywhere to move to - is this correct?

If it is then when do you think I should start talking to my bank about the mortgage?

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