Mortgage Application - Should I have received an IDD or KFI already?

Midnight_Tboy

Rang up Nationwide themselves on the freephone number....they confirmed the local solicitors/conveyancers I found are on their approved list....so at least tomorrow when I see the EA Broker I can confidently push for them instead of them trying to push me into Nationwides own (it was around £770 give or take)

So can anyone please tell me if I am likely to have to take Nationwides own buildings insurance? Or can I opt to select any of my own from shopping around? From the quick search I did Nationwide were significantly higher in Buildings & Contents Insurance

kingstreet

An EA advisor is going to be selling you THEIR tied insurance products, not the lender's, so Nationwide won't figure in anything but the mortgage.

I really wish you'd spoken to a whole market broker for mortgages and insurance before you got involved with the firm you have.

Midnight_Tboy

thanks.

Yeah me too really. Things moved really quickly

It was the Saturday a week before that we had the first viewing for the house. The monday, I went to the Nationwide bank I'd found best deals with, just to get the ball rolling officially for any sort of DIP, but they couldn't see anybody until Fri 11th. (At this point they could've said, as has since been pointed out to me, that their DIPs could be done over the phone)

The 2nd viewing was done on the Tuesday, being just my partner and my mother (who is giving us part of the deposit). The EA then rang on Wednesday saying that if we were interested (which we were) that it had already had a handful of offers in up to the full asking price.

It was that point, that we rang them back a couple of hours later and put in our own offer price. The EA said however that they insisted on seeing a DIP before they can take the offer seriously.....there the problem started.....this was around 2-3 on the Wednesday afternoon, whilst I was already at work too. So at that point their own MA was off but a MA in the next town was around , so called me back saying could get them down to see me......and so begins the first meeting on the Thursday morning.

By Thurs afternoon, had the callback of DIP approved, and Friday afternoon had the offer accepted over the phone

Well I've got a few approximate quotes from comparison sites for house insurance ( as good as 150-250 depending whether add accidental damage options or not, vs the basic Nationwide insurance option being around £350.....so I won't be getting pushed into that

I just get anxious that they don't try and sneak in a charge/service of their own without me realising (I had this a good decade or so back, asking for my very first overdraft at a bank, who said "sign this and this which you need to get an overdraft" and then added the dreaded PPI......had that on for ages without realising, which also ended up causing me overlimit fees from time to time at times when I was skint....and was only working part time contracts and wouldn't have been protected under the conditions anyway

magpiecottage

The estate agent is lying. You can put in an offer without a decision in principle - and they are legally obliged to pass it on.

They are looking for a fee (from you and/or the lender) for arranging the mortgage.

Midnight_Tboy

I figured as such - unfortunately was over a barrel and in a rush at the time.....typical(!)

Thanks though

Midnight_Tboy

(arghhh having to rewrite all of this as after submitting had a token expired message )

Well....I had my visit with the broker this morning...very anxious heading in etc.

I asked about the IDD from the initial meeting. There was no printer in that room (again she had come from a different branch to meet me) but told me she would email it (Still waiting). I got my KFI form today however

I confirmed with her that there was no broker fee as was waived, she confirmed, and at a later point one of the documents I was signing had marked on it that the broker fee was waived.

I am however, thinking they still had me over a barrel with a very painful looking barbed instrument with something else on the KFI though.

Here is the information

To summarise again. It is a 110k property, 70k mortgage, and 40k deposit. With Nationwide at 3.09% for 5yrs fixed, and a 499 fee (99 fee + 400 reservation fee)

Here are the details of the KFI

Fees Payable to Nationwide

1.
Booking Fee
Payable on application
Not refundable
£99.00
(fair enough)

2.
Product Fee
Payable on application
Not refundable
£400
(fair enough however I thought this was meant to be refundable? They assumed and added it to the value of the mortage (taking it to 70400). I was going to choose to pay it up front, but then thought 'well if it really is non refundable, then it protects me a little by not having to splash it out if the sale fell through" The cash in bank being saved, vs the mortgage interest offsets it pretty much anyway)

3.
Valuation Fee
Payable on application
Not refundable
£180.00
(they just assumed I wanted standard valuation for some reason, I had to ask to have the Homebuyers Report done, so this was crossed out and changed to £330)

4.
Telegraphic Transfer Fee
Payable at the start of the mortgage
Not refundable
£25.00
(fair enough)

5.
Redemption Fee
Payable on final repayment
Not refundable
This is the current fee
£90.00
(fair enough - I think)

Other Fees

6.Valuation & Administration Fee
Payable To Broker
Payable On Application
Not Refundable
£149
(This is the one I'm very dubious about. I asked about it, she kinda glossed over it, said that all applicants have to pay it. To me however, it sounds like they try for 2 charges....a broker fee, and this one (maybe for if broker fee is waived - makes it sound better suckering people in for the promise of the waived fee. Trouble is, whilst thinking about it, I don't really know for certain that this isn't a valid fee that really would happen in all cases or not regardless of broker or direct with bank...and unfortunately because they were awkward from the start, scamming me into coming in for their own DIP to have offer put in, as explained earlier, options limited really......if I'd left them, went for another place, or direct to lender, who before couldn't see me when tried until 10 days time, then could lead to sale falling through.....so I reluctantly paid that one. In the grand scheme of things this is a small amount for the insanity a few days of having to restart would have caused. so guys have they scammed me on that one?)

7.
Legal fees payable to your conveyancer for acting on behalf of the lender, usually payable at the time the mortgage starts and non-refundable. The figure quoted is an estimate and is only part of the cost of the conveyancing work. You should ask your conveyancer for details.
£120.00
(fair enough, I believe this is normal though could be wrong. I rang and got quotes from a couple of local solicitors yesterday (around £775 fixed), checked with Nationwide they were on their approved list, so informed the TA broker I'll be using those for that.

Needless to say, I was offered options on building, life, critical illness insurances etc. Just took them documents home to 'look through' Will be interesting to compare them to the quotes I come back with later

So.........what you reckon guys...they ripped me off that £149 with their pressure to get the DIP through them? (methinks so)


edit - on looking at this, it could be fine however?....although higher than normal going by that

http://moneyfacts.co.uk/guides/mortgages/what-fees-do-i-need-to-pay/

4. Valuation Administration Fee

What is it? A fee a lender will charge you for dealing with administration costs arising from processing the mortgage valuation. This is paid when you apply, together with your Valuation Fee.
How is it paid? You generally have to pay this upfront when you make your mortgage application.
Is it refundable if I don't proceed with the mortgage? It will depend on when the application was declined or cancelled. If the lender has done some work liaising with the surveyor to do a valuation for instance, you may not get this money back.
Where can I find this fee on my KFI? This fee will appear in Section 8.
How much roughly can I expect to pay? This fee is normally a flat amount, in the region of £50 - £100.

amnblog

The problem here is there is no trust between you and the MA.

Therefore even if they are genuinely giving you the best service and options they can, you still feel you are being mislead.

I believe you should front them up about this and tell them you are not comfortable. This will give them the opportunity to improve matters.

I believe the valuation administration fee causing you so much stress is charged by the lender not the broker.

The brokers on here will always suggest you get yourself positioned with a mortgage through an independent broker prior to making an offer.

amnblog

By the way. Don't buy insurance because it is cheap.

Insurance, like brain surgery is something where the result is far more relevant than the price.

Midnight_Tboy

Thanks....

...truth be told, I'm now kinda relieved it's all over I was more concerned about the "up to £550" broker fees that could've been put on, but I'm overly paranoid and cynical about giving anyone my money Probably after been scammed in Natwest many years back with PPI them adding it to an account without informing me, causing overlimit charges plenty times back in the day. The lady herself was very very good, and helpful that I saw, but I was expecting hidden agendas

It does appear on reflection, after finding that webpage about the extra fees that I was overly concerned and that they are genuinely charged, even if they are payable to the broker, and that the lender may have charged a similar (if maybe a tad smaller) charge.

Now I just have the worry about waiting for this application to be hopefully approved

As for the insurance, yeah of course I'll try and find the best deal, rather than the cheapest one. I've took the documents, and will get some more accurate quotes for insurance tomorrow and weigh up the pros and cons. Just a lot to do in a short space of time with balancing work etc. The printouts for the life insurance, while I haven't checked details, seem a reasonable quote, considering what I was expecting at around £10 per month, vs around £45 or so per month for critical illness cover which may be a bit out of my budget once I'd added on other expenses. Likewise with house insurance, cheapest I found on a preliminary search was around £150/year, but some more detailed deals around the £250 mark that might be the better option

amnblog

We have two clients who in the last year have had 775000 reasons they were glad they took out critical illness cover.

Keep out of Starbucks and invest in CIC