No fees but now changed there mind

iazms

Looking to remortgage a house on buy-to-let product. Went for a deal with no valuation, completion or legal fees. But because I've never had a mortagage on the property before, they now imposing a legal representatives for me at a cost of £250. How does me having a mortgage on the propety before or not have anything to do with me wanting to remortgage now and why would i need a solicitor?

Secodnly, because of this, they now saying, essentially the mortgage product is different therefore I have to pay the valuation fee of £350. I feel they have stitched me up!!

Can they do this? Seriosuly thinking about taking my business elsewhere.

Really peeved off right now.

silvercar

So you went for a deal that was meant to be fees free and is now costing £600!

Walk away, unless they are the only one who will lend you the money.

iazms

ok lets break this down.

1) Do i need a solicitor if I am remortgaging on a buy to let (even if i have never had a mortgage on the house before) ?

Any assistane much appreciated.

homer_j_3

where a property is mortgage free, this can happen. Not 100% sure of precise reasons but im sure its something to do with the fact that searches have to be done if no mortgage is existing because normally a lender will assume that the title is safe when an existing lender has taken the risk

i may be way off the mark though lol - so if i am corrected - no worries

iazms

yeh the broker was saying something along them lines too....how they wud have simply gone for a insurance but now searches etc are involved....

So 2) How come I now have to pay for the valuation fee too....

tbh 5.99 fixed for 3 yrs and only £600 fees - ive not been able to find anywhere better than that.

MarkyMarkD

If you apply for a mortgage which is specifically described as "remortgage only" when you don't have a mortgage on the property, it's pretty obvious why you are having problems.

Why do you describe your situation as remortgaging? YOU ARE NOT REMORTGAGING - you are mortgaging an unencumbered property, which is completely different.

Your situation is no different to someone applying for a first time buyer only mortgage when they are in fact remortgaging - it's not acceptable according to the product terms.

What's so hard to understand?

herbiesjp

HI MArky

Some lenders will actually classify the raising of a mortgage against an unencumbered property as a re-mortgage.

The problem is, other lenders do not.

It could be the case that the deal offered was with a lender that does offer the free legals etc, but only on properties that have an existing mortgage on them


HTH

MarkyMarkD

Some lenders might classify it a remortgage, but it ISN'T a remortgage.

wardlaw

Whether you have an existing mortgage or a uncumbered property, and want a new mortgage, on same It is called a re-mortgage

As you are in effect carrying out a mortgage transaction ,conveyancing will be required and as such ,there will be legal fees as the lender will require to have notes on the Title Deeds to the effect that you have a mortgage for x amount with the xyz lender

In addition a Standard Security will be required to be drawn up which is basically an agreement between yourself and the lender which outlines the terms and conditions of the mortgage being granted

This all costs money