Potential remortgage with HSBC - Question re mortgage offer

confusedgirl_2

I have an appointment with HSBC tomorrow to try to book their 5 year fix at 3.99%. I want to see where the land lies with regard to interest rates in the next 5/6 months and have that lined up ready to take if necessary in a few months.

There's a booking fee of £99 which I understand I will have to pay and forfeit if I don't take up their mortgage offer once I accept it (assuming of course I am accepted..!).

There's also a valuation fee of approx. £197. Does anyone know at what point I have to pay that please? I assume they need to do the valuation in order to make me the mortgage offer, so I would have thought I need to cough that up as well. I am willing to lose the £99 for some peace of mind but another 200 quid on top of that is another question!:rotfl:

Thanks

GMS

They cannot issue a mortgage offer without having valued the security so you would need to pay this pre offer. Generally once the lender is happy with the rest of the application they will instruct the valuation.

Its going to cost you a booking and valuation fee to get an offer.

confusedgirl_2

GMS wrote: »

Its going to cost you a booking and valuation fee to get an offer.

Thank you. This is what I suspected. I assume a decision in principle does not hold the rate and will only stand for a number of days. I remember obtaining this before off the web before I went for my original mortgage so I don't think it means much.

Currently on a tracker of BOE +0.99 so unsure what to do really...

At what stage does the application go to the underwriters?

GMS

A DIP does not hold anything. An application needs to be made to secure a rate.

The application would be referred to the underwriters upon submission. Additional information would be requested as required and once all looks ok a valuation would be done.

You have a great rate currently but this is at the mercy of any rate increases. When rates increase so will the fixed rates so you need to decide if you are happy to pay more per month initially for a longer term security.