To Mortgage or Not To Mortgage.....

Moomin

In the process of buying a house and we applied for the 2 year tracker A&L mortgage thru a broker a couple of weeks ago. The vendor accepted our offer on the basis that we would exchange within 28 days. We've got another 2 weeks left, and are concerned that A&L or are broker are being slow and haven't arranged a date for the valuation (we've had a couple of delays with address checks etc, but think they now have all the details they need).

We have applied for a small mortgage but if we dipped into our savings we could in fact afford to buy the house outright but means that we would only have a few thousand to cover any emergencies and would have to be extremely careful with our spendings. But considering that the lenders are being slow, we are now in a dilemma............Do we risk it and let the A&L get on with our mortgage application and valuation and hope that they will get a valuation done by end of this week and report submitted to us early the following week.......or do we forget the mortgage and pay outright?

We fear that if we don't make the 28 day deadline, that the vendor may decide to offer the house to previous viewers who had put in an offer but were refused on the grounds that were applying for a larger mortgage and couldn't afford to put a large deposit down.

What should we do???!!!

dwsjarcmcd

I think you should chase your broker and A & L. Whether or not you need a mortgage you do need a survey done before you exchange, so almost the mortgage offer isn't that important for now.

Once you know the value and condition, you could exchange on the basis that, if you need to you can fund the property without a mortgage, then push the broker to get his/her finger out and get your offer issued.

As I say, I think you need the valuation done and take it from there.

herbiesjp

Definitely you will need the survey before completing the purchase, so you know that your property is sound and the right price.

If deciding not to proceed with the mortgage, you can get your own survey done.

I can't see the reason for the delay, as if they have all the information surveys are being carried out very quickly at the moment.

Definitely badger your broker, or get another one to look into your situation, and get a new application started elsewhere if needed.

Are your solicitors all up to speed with searches etc, ready for the stipulated deadline?

feisty1

Moomin wrote: »

What should we do???!!!

Fone yr broker tomorrow, A&L would not have appointed surveyor until they rcvd any outstanding documentation from you. I understand once valuations are completed offers are going out within 3days..........

pixiepie99

A&L are usually very very quick at doing the survey - usually within 2 or 3 days so there must be something holding it up.

Moomin

Decided not to go ahead with the mortgage. We badgered our broker first thing Monday morning - he kept fobbing us off with "I'll find out and call you back" and didn't always return our calls. Sometimes he wouldn't even pick up the phone. We were informed on Tuesday afternoon, that A&L were satisfied with the documentation. Great - so we thought the valuation would be booked in during the week......we didn't hear anything. OH left msgs with broker on Friday. Broker returned the calls in the afternoon to see he hadn't heard anything and would come back to us.....funnily enough, by end of Friday he hadn't gotten back to us.
So yesterday, we rang the EA. They were aware of the delays with our mortgage application and said A&L had booked a surveyor for next Thurs!!! Too late really, considering they take 3-4 days to issue the valuation report, and then we have to approve and solicitor then has to do his bit.
So we made the decision to do away with the mortgage and fund the house ourselves and have booked our own surveyor to value the house. We don't have enough time to arrange another mortgage with another broker. So disappointed with the broker and A&L. I thought that in the current housing climate, our application would have gone through quickly esp as we were borrowing a small sum, but it turns out that A&L are perhaps a bit too blas! about getting in new business. Their loss!