Anyone with a post office mortgage?

paye

My offer letter from the post office come through yesterday and theres one thing I don't understand, I've applied for a mortgage of £159k the purchase price of the propoerty is £189K. Now on the letter I got yesterday it says on the front ''Net amount to be released on completion: £157,971.00 but when you go on through the offer letter they give details of what I will be paying each month based on a loan of £159k, Just woundering why they haven't gave me the full £159k ,
it's short of £1029 which totals to £999 arrangement fees, and £30 chaps fee, but sureley that should be on top of the £159k loan i wanted. I phoned them yesterday but they are closed, any ideas anyone.

G_M

Looks to me as if you've answered your own question!

You could try re-applying for a mortgage of 160,029 but it would delay the process considerably!

jockosjungle

Yes you have answered your own question, I'm in the same position (but had the fee added to the mortgage) but need to find an extra £30 out my own pocket (not really a massive issue)

R

clutton_2

this is where reading your own documents (especially the mortgage illustration which contain all these t&cs) VERY carefully before signing anything comes in handy.. some mortgages add on arrangement fees, some dont,...... there you have it

123radley123

I'm applying for a PO mortgage at the moment. You should have been able to make the choice of whether or not you added the fees to the morgage or pay up front. I have chosen to have them added.

I recieved a letter on Friday, requesting info (bank statements, payslips etc) and the letter clearly states my requested loan amount and then goes on to say ..."arrangement fee £999.00" ...."to be added to the loan".

Sounds like the PO believe you will be paying this upfront. Might be worth checking with them.

StractBoo

We are literally having exactly the same problem. I currently trying to get hold of my solicitor to find out what it means. I am going to phone post office later. I'm very worried now.

The document does say they will lend us "£126k" so why does "net amount to be released" say £124k? We did ask to pay our fees seperate and NOT to add it to mortgage so this should not be happening?

Please let me know what you find out paye

Thanks

poppysarah

What do the terms and conditions say?

If you're not pushing yourself with this mrtgage finding the extra money shouldn't be hard. Because you have budgeted for emergency boiler failiure/roof falling in etc and have some spare cash. YES?

StractBoo

:jPhew...Just phoned post office. It is because they take the CHAPS fee and applications fee out of the amount borrowed and then you pay your solicitor that money instead. I dont know why they do it that way but that's what it means. So you dont need to worry about borrowing extra. We are so relieved. If only they had explained this in the document!

jockosjungle

They do it that way to make the sale quicker, instead of you paying them and then them paying you, it makes sense really.

R

neverdespairgirl

123radley123 wrote: »

I'm applying for a PO mortgage at the moment. You should have been able to make the choice of whether or not you added the fees to the morgage or pay up front. I have chosen to have them added.

That seems an expensive thing to do, though? Borrowing an extra £1k over 25 years?

Batchy

Im going through PO, you just needed to tick the box on the application. Unless you wanted to pay them the fee.

I Can imagine it can be confusing ... but dont worry, just contact them, they will amend the paperwork, and then you can sign, if its not how you wanted it.

Just for the record... Post office have reduced all their rates, well MOST of them anyway, if your package has gone down (interest rate wise), ring them and get them to change it, and send new paperwork anyway!!!!!