AIP- Valuation fee???

*Sparkle*_3

Hello Guys

wondered if you can help me....

I am purchasing the rest of my shared ownership home, i have got an AIP with Birmingham midshares.

On the key facts sheet it says about the valuation fee of £390, which is pretty steep seeing as the housing association sent me a list of valuation companies starting from £95 up to about £300, if i take this mortgage do i have to get there valuation fee or can i choose my own??

Barney088

You have to pay their fee, and they are steep. If you read the small print somewhere they will even explain that some of it (the majority in this case) is reserved as an admin fee by Birmingham Midshires for work involved in carrying out the valuation.

Well, they've got to have a christmas party, and then there's the staff bonus, and the directors new BMW and you get the picture.

You may try your luck with the valuation, although I doubt that BM will play ball. If your valuer is on their panel of valuers they may, on a good day let you use your own. I really wouldn't hold your breath on that though.

*Sparkle*_3

Thanks Barney.
Oh thats not good news as you can see i'm trying to pay off my debts too so i want to keep my costs to a minimum :mad:

Mmmm not sure what to do....

PS what do you think about Birmingham midshares?

Barney088

They are a lender that knows it's place, they are in the self cert arena and minor adverse (defaults CCJ's) and have a fairly flexible critiera. They are good at what they do and are competetive within their field.

If you are not in their feild you'll probably get a better rate on the high street, alternativly check with a good local mortgage broker.

*Sparkle*_3

Many thanks again

I am applying on a self cert basis as i am self employed, (also have part time employment).
I think i might just have to cough it up...

Cheers

regularsaver1

Do you have a mortgage on the original tranche?

*Sparkle*_3

regularsaver1 wrote:

Do you have a mortgage on the original tranche?

Sorry i didnt quite understand what you said?

My mortgage now is with abbey, which is for the 50% first share

AndrewSmith

Another point to remember about Birmingham Midshires is that it is owned by the Halifax thus has a strong backing.

They are also renowned for the speed at which they produce mortgage offers. Average time over my last 10 submissions with them has been around 10 days from application to written offer.

They allow portability and 10% overpayments too. Watch for the early redemption penalties within the enhancement period though, they can be a bit high, along with a recently introduced 1.5% application fee on some products.

Andy

regularsaver1

have you approached them to see if they will lend for the additional share/tranche? and what their fees would be (even with what you have said above)

usually you would have to pay mortgage lender plus valuation with housing assiciation

*Sparkle*_3

Uhhh just looked up what tranche means! learn something new everyday

Thanks andrew, its for a 2 year fixed rate.
Which is what i wanted fixed for two years, then i can move around again.

AndrewSmith

If you are not in a hurry to get a mortgage offer, Northern Rock have some very competitive 2 year deals at the moment. Just steer clear of their stepped rates as you could catch a cold after the first year when the rate jumps considerably.