Remortgage Fees

Doctor_Duke

I have applied for a remortgage with Nationwide using their flexexclusive products that includes valuation and legal fees being met by the lender. We have an approved decision in principle and Nwide have appointed a conveyancer and a valuation is booked. We are clearly a way off from a mortgage offer. The question I have is if we change our mind before the mortgage offer is made (if it is) will we be liable for the fees on the valuation and legal work that Nationwide are providing. We have a number of DIP with other lenders with slightly better rates that we are also considering. With thanks for any advice.

ACG

Most dips include full credit checks. If you do too many you could find you are messing up your credit score and your chance of obtaining a mortgage at a competitive rate.

Decide on one lender, go with that unless you are declined.

A DIP is exactly that, it is in principle. When they credit check you again at application stage you may find they decline you.

As for costs, ask nationwide. I do not think they will charge you for the costs they have incurred but it is best to check with them.

Doctor_Duke

ACG wrote: »

Most dips include full credit checks. If you do too many you could find you are messing up your credit score and your chance of obtaining a mortgage at a competitive rate.

Decide on one lender, go with that unless you are declined.

A DIP is exactly that, it is in principle. When they credit check you again at application stage you may find they decline you.

As for costs, ask nationwide. I do not think they will charge you for the costs they have incurred but it is best to check with them.

Many thanks for the advice. Don't worry I am very protective of my credit worthiness and have checked and made sure that only two lenders have done a hard search. Good advice though thanks. I will probably go with Nationwide if we get to mortgage offer but have a DIP with the other lender that is a good near 0.5 lower rate. If I got approved with the better rate lender I would want to know if Nationwide would come chasing if we didn't accept their offer which is a good rate but not market leading.

Thrugelmir

They'll ask for upfront payment for the valuation one would imagine. As it's a pure cost to them. So will seek reimbursement. In case as you say you change your minds. No legal work will commence until there's a mortgage offer. Again costs incurred will be yours to bare.

ACG

As far as I am aware only Natwest say they charge an admin fee of £150 if you cancel a mortgage after it has been offered, but im not ure they actually enforce it.

Doctor_Duke

Thrugelmir wrote: »

They'll ask for upfront payment for the valuation one would imagine. As it's a pure cost to them. So will seek reimbursement. In case as you say you change your minds. No legal work will commence until there's a mortgage offer. Again costs incurred will be yours to bare.

I am afraid to say they have already commenced legal work and appointed a solicitor and have not asked for a payment for the valuation that is booked. Both of these are included in the product offer and so far everything has been approved including income. If we got to mortgage offer and didn't accept that's when I wanted to know whether they would seek reimbursement. Thanks for your comments anyway but as suggested I will speak to them as there could be a number of reasons why we couldn't accept the mortgage offer not just because we found a more attractive rate.