Post Office AIP accepted already taken valuation fee??

lc87

hi all,


applied with L&C for a post office mortgage last night,


got an email this morning saying bank of Ireland have taken the £270 for a survey/valuation already?


surely that's abit premature as we haven't been offered a mortgage yet?


what happens if we don't get an offer now? is it bye bye to that £270?

betmunch

They cant offer the mortgage without the valuation.

If the valuation is done then the application is declined then you lose that money.

If that is an unacceptable risk to you then Post Office isnt the lender for you

lc87

isit just the post office that operate like that?


ive read about people on here who have bee declined 3-4 times before they get accepted. fees will soon mount up if every lender operates like that?

betmunch

No, some lenders do the valuation while underwriting.

Some lenders do the underwriting before authorising the valuation.

lc87

thanks for the reply,


when they say accepted in principal, whats actually checked? isit just an affordability check? while looking at income/outgoings? or is there any sort of credit check done at that stage?

betmunch

Credit check and affordability check should be done at AIP stage.

Underwriting basically repeats the same things but in a lot more detail, and chucks in a load of other questions to make sure you meet criteria.

That is simplifying the term underwriting of course

blinko

You should complete the underwriting part of the mortgage first before paying for a valuation unless of course the estate agent or you require the surveyor in to maybe secure the property.

in my case i wanted the bank to complete the underwriting first before paying for the valuation fee and luckily they only lowered the amount they are willing to lend by £5k if it had been more I might have had to walk away and would've lost the valuation fee.

Although a question are you sure the valuation fee isn't an booking fee. I had to pay that just for the underwriters to look at my case.

pjread

blinko wrote: »

unless of course the estate agent or you require the surveyor in to maybe secure the property.

That made me chuckle, does that line actually work? Sounds about as likely as "the vendor won't consider offers until our in-branch mortgage adviser confirms you can proceed".

kingstreet

blinko wrote: »

You should complete the underwriting part of the mortgage first before paying for a valuation unless of course the estate agent or you require the surveyor in to maybe secure the property.

in my case i wanted the bank to complete the underwriting first before paying for the valuation fee and luckily they only lowered the amount they are willing to lend by £5k if it had been more I might have had to walk away and would've lost the valuation fee.

Although a question are you sure the valuation fee isn't an booking fee. I had to pay that just for the underwriters to look at my case.

Some lenders debit the valuation fee at application.

However, the valuation fee isn't "spent" until the inspection has actually been done, so a decline pre-valuation would usually mean the fee is refunded.

lc87

checked noddle this evening, shows a money laundering check from L&C but nothing from post office.


I would have thought that would show up when they did the soft credit check for aip?