Valuation fee too much?

Lulu_Bee · 24 March 2007 at 6:19PM

Hi all
As something of a finance numpty, I wondered if anyone has an opinion on the valuation fee we have been quoted through Northern Rock. We have been accepted for their 'Together' mortgage, as we are FTB and have no deposit. House price £150k - they are quoting £505 for a valuation fee - having trawled through some posts on this site, this seems outrageously expensive - or am I missing something??
Cheers

lianne1978 · 24 March 2007 at 6:38PM

Is it a homebuyers survey? If so, that is probably about right, we paid 510 with A&L for our homebuyers. However, if its a basic mortgage valuation it seems very steep. As FTB some financial inst. usually offer good deals to entice you to take out their mortgages, although I'm not too sure if NR do. Sorry I can't be of any more help.

steveandel · 24 March 2007 at 6:44PM

Yeah it's steep if it's not a homebuyer's survey. We paid £425 for our homebuyer's survey. The valuation fee on its own was £295 with Nationwide

Tiger_greeneyes · 24 March 2007 at 6:48PM

If it's not a homebuyers report, are you sure they're not adding on the mortgage booking fee (or something similar)? It's definitely a bit on the steep side for a valuation.

dwight-van-man · 24 March 2007 at 10:09PM

Hiya, the Northern Rock val fee is broken down into three component parts. the val fee itself accounts for £160. Alongside this, there is a fee of £270 which is a 'commission for facilitating, accepting and evaluating the valuation report' and £75 application fee. £505 total. In reality, these extra fees are part of the product costing and have nothing much to do with the valuation report, and are charged like this because accounting rules allow them to be claimed in the current years trading figures, whereas a product fee or arrangement fee has to be spread over three years. Your broker or NR adviser should have explained this as its common knowledge to them.

MortgageMamma · 24 March 2007 at 10:20PM

Northern rock are generally pretty steep on fee's, be it vals, or arrangements. Their rates are not the most competitive at the moment either. But if you need a together mortgage there are only a couple of lenders who will lend in this fashion so its a captive market and NR are fleecing it, you either pay it or you dont!