Solicitor Search fees before mortgage approved

tiny_atoms

Hi all

Me and my boyfriend are in the process of getting a mortgage with nationwide. The valuation was done on Friday but I've heard nothing back yet. The solicitor allocated to our case (done through nationwide) has written to us with an outline of the fees involved, searches etc..They are asking us to pay the search fees now so they can get the ball rolling so to speak. Whilst I want things to start happening and avoid delays, I don't really want to do this in case we don't get the mortgage and the valuation doesn't come back ok.

What are your thoughts?

Becci

holly_hobby

Personally, I would wait until you have your mortgage offer - as you rightly acknowledge that the mge application may stall due to failure to satisfy NWides status checks, or the survey coming back with issues that can't be resolved.

Hope this helps

Holly

orionsquare

If you instruct your solicitors to commence work and carry out searches before the mortgage is approved you will risk losing your search fee and your solicitor's costs if your mortgage is later rejected.

Just a word of warning: Be very careful with mortgage lenders as some of them like to entice you with their in-principle agreement and the broker assuring you that it is OK to go ahead with the application and ask you to pay for a valuation fee. If the mortgage lender then decides to avoid lending to you, they can give you a load of **** and stipulate a load of conditions that you need to jump through hoops just to satisfy them. If you cannot satisfy any one condition they require you to do so, they turn down your application.

I am just letting you know that you will risk losing your valuation fee plus solicitor's fee plus search fees if the mortgage is subsequently not approved.

I hope this helps.

tiny_atoms

Yes thanks all, you have helped.
The valuation was done for free by nationwide and they are paying towards the solicitors fees (only their basic fee's though). We got a DIP at the same time as applying for the mortgage. I am just hoping everything goes through ok! Its a waiting game I guess! Does the DIP give us a better chance or is it just a matter of waiting to see what the underwriters say?

holly_hobby

A decision in principle basically confirms that the lender has performed CRA checks on you, and status checks which they are satisfied with - the only thing to then hold up the mge would be a poor survey and any material change to your status, before completion that the lender becomes/is made aware of.

So unlike an AIP, a DIP is much more concrete with regards to the uw concerning yourselves as individuals.

To which as long as the survey comes back ok, you're home and dry (subject as I say to any material change between offer and completion).

Hope this helps

Holly

tiny_atoms

Sounds positive lets wait and see what happens then!

Becci

Mods

Hello,

I found my conveyancing solicitor to help with my house purchase through Fridays Move who say they operate on a 'no move, no fee' basis. They referred me to a solicitor who has said they need the search fees before they can carry out their searches and start the conveyancing process. Can I assume this will be refunded by the solicitor or Fridays Move should the purchase fall through? I'll call them tomorrow to find out for sure but I was wondering has anyone else come across this. I've already paid a deposit to Fridays Move and I assumed all payments would go through them. Any help appreciated.

Thanks!

Thrugelmir

Have you received a mortgage offer?

Mods

Hi Thrugelmir,

Yes, I have had my mortgage accepted and it's all ready as far as I know.

holly_hobby

No, if the searches have been conducted then the fee is no refundable.

The best advice, is to pay them the monies BUT instruct them to hold off on conducting any title/local searches until you have received your formal mortgage offer.

That way, if you or the property do fail the lenders underwriting criteria, the serach fees should be refunded if you elect to withdraw from the purchase.

Hope this helps

Holly

Mods

Rang Fridays Move who referred me to the solicitor who said I have 'Search Plus Protection' which means if the purchase falls through, they'll use monies already paid in my next property searches.