To risk taking out a morgtage or not?

lauren2811

Hi,

I have been offered a morgtage in principle by Halfiax through a Broker, financially it is going to be tight. The advisor has said there is a 30% chance that the morgtage will be declined. Now I don't know what to do, do I take the chance that it may be refused and lose £600 in costs or walkaway? Anyone else been in a similar situation?

Thanks

Lauren

GMS

What costs do you mean?

How can the broker say a 30% chance of decline? If you have an AIP and all information was correct then why would it?

Affordabilty should have been checked before submission.

koexelek

Ask the broker to not do the survey until they are 100% happy with your affordability. They won't charge you for something if they don't do it.
The arrangenent fee can be added at completion, so if it does not complete, you won't get charged.

This way, you should avoid losing up front fees

lauren2811

The costs involved are £249 Brokers Fee and £355 valuation fee, my understanding was that they would both be payable regardless of result of application or am I getting my info confused?

I'm worried that the credit report may show something, although I haven't seen it for myself.

GMS

Valuation fee will be payable if the valuation is carried out. Your broker should ensure that this is the LAST thing to be done so if for any reason there is a decline you would not pay.
If there was a decline due to the valuation then you would pay as it has been carried out.

What does your fee agreement with the broker state? If it is to be paid up front then yes you would ned to pay it. If it is payable on completion then you should not have to pay unless you get a mortgage and complete on it.

You really should have obtained a copy of your credit report form Experian and Equifax. £2 each.

You have passed teh AIP so would seemingly have passed credit scoring. As long as all information given is verified by the lender they should follow up on the AIP, subject to valuation.

Of course a lender can decline at any point but do not worry too much. Make sure the valuation is the last thing, as in the mortgage is all but approved subject to the valuation.

lauren2811

Thank you for all your advice. This really is whole another world to me!