Mortgage Fees, When to pay?

Tlg1991

long story short. my partner has gone to our mortgage broker and sorted our mortgage it has all been approved there and is going through. then told me she has paid for the broker fees and lender fees and whatever else.

my problem is i told her not to pay anything because the house we have made an offer in is still being lived in until the end of October going into November maybe as the vendors are moving into a new build and they only get finished at the end of October.

I had read that you shouldn't pay anything until the chain is complete and i don't think they have actually gone through with anything yet. i'm just worried i have forked out for some fees for the mortgage to expire if it all get delayed and then have to re apply.

libf

When do you need to exchange? Do you have a firm completion date yet?

A lot of the time exchange is a lot before completion with new builds, so you may well need to have the mortgage offer in place relatively early anyway.

Tlg1991

no completion date as far as i know, as like i said the vendors are looking at new builds but haven't decided i don't think. i wasn't expecting the mortgage to be going fully through today or even a full application as the date is still a while off.

i don't mind it all being ready, i prefer to be organized. i just thought once you had a full application there was a short expiry date on them as opposed to in principle.

Malmo

It sounds like a lender has been identified for your case that has accepted you for a Agreement in Principle (AIP) or Deal in Principle (DIP). This is now being taken forwards as a full mortgage application, subject to underwriting and valuation. Mortgage offers can remain valid for up to 6 months / 180 days, depending on the lender and these can be extended in certain circumstances.

How & when is your broker paid? This should be set out in the Initial Disclosure Document (IDD) or Terms of Business that your broker should have provided you with at the outset. It is advisable to work with a broker who is paid on confirmation of a mortgage offer or on completion.

Which lender is it? The lender's valuation fee or combined Homebuyers report fee will be debited at different times, depending on the lender.

Did you also choose to add the mortgage Arrangement Fee to the loan, or are you opting to pay this fee upfront?

Your timelines are likely to be influenced by your vendor's builder's requirements, as builders generally require exchange of contracts to take place within approx. 1 month of plot reservation. Has your vendor reserved their plot yet?