Which Mortgage To Go For - Advice Please

chickmeistergeneral

AndrewSmith wrote:

A general point on Mortgage Application or Booking fees.

For a number of years now I have been advising clients to, at the point of application, ask the lender to add these fees to the loan which is an option available in most cases.

This means that the only upfront fee generally paid to the lender is the valuation fee. I say generally but yes I accept there are exceptions where the lender will ask for an arrangement fee and a booking fee. One can be added, the other is payable up front.

Once the lender has approved your mortgage and is about to issue the mortgage offer you can then choose to pay the fee prior to drawing the funds (thus not having it on the mortgage for 25 years).

Doing this means that if your application is declined you will not lose any application or booking fee as you will not have paid it until the point of the mortgage being offered.

Also most lenders do not instruct valuation (unless pressured by the applicant to do so, or if you apply via the likes of some estate agency chains who charge extra valuation fees and instruct immediately) until they are satisfied that your application is within criteria and you have passed the initial checks and credit score. After this, as long as the information provided is accurate then you will have nothing to worry about.

Andy

Hi everyone

When i spoke to Portman, they did say a cheque or some other kind of payment type would have to be made before they look at the application. (has to accompany the application) I dont need to send the money for the decision in principle but they cannot give us a definate answer until the application.

I have looked around at a few other 100% mortgages like co-op, but they ask for 3 years worth of proof of address, and wage slips. I dont have my last 3 years wage slips, i stupidly shredded them when i changed jobs last summer :mad: and with my partners address changes its a problem.

I did speak with one lender that said a letter from my partners commanding officer may be sufficient to prove his addresses but they couldnt give us any definate answers, Yorkshire BS declined us a mortgage, and the address changes where thought to be the reason why as we couldnt prove them on credit files, and we had nothing else going against us.

Natwest will give us 1% cash back on completion, so that makes the HLC a little lower (if we put it against it).

I really wished i had shopped around more before we found our house. We did actually think we had, and found a good deal with Natwest (in march when we first started looking) when there rate was 5.45.

Who said buying a house was simple!!!

Thanks guys

chickmeistergeneral

Thanks andy

I will send the mortgage in principle, and see what they say, and get my other half to speak with people his end.

The reason we are trying to rush through with a mortgage is he is on standby to go off to iraq with only 12 hours notice, so we want a lot of the inital stuff sorted asap. Our solicitor will then take power of attorney for him so there is no delays if he is sent over.

It also doesnt help that we are 300 miles apart so i have to send everything on to him to sign his half after i have.

Sorry to ramble, the joys of getting on the ladder ey!

TEDDYRUKSPIN

Try HSBC? They have a no fee (including free valuation, admin charge, completion charge) but at a similar rate. Look at the website. If you have recently graduated within the first 5 years you are entitled to a 100% mortgage.

Companies like the above you mentioned will always have a charge for 100% LTV's. So as suggested, always put at least 5% deposit down.