Product fee -6 month expiry

boogiesherbs

Hi all our first direct mortgage offer (subject to paying the £1450 products fee) expires after 6 months at which we lose that fee! Which seems like a roll of the dice as our house has just gone on the market

Is this normal?

AnotherJoe

Dont know about the fee, though its very high, i hope its a stonking rate, but why have you applied for a mortgage so far in advance?
Who is the lender?

boogiesherbs

Well I thought as mortgage applications take 4-6 weeks we would need our mortgage offer to allow us to make offers on property( if we get a quick offer on ours)

(2.19% 80%ltv 5yr fix)

ACG

You have a decision in principle?
You can not have an offer if you do not have a property to buy.

Dont get drawn in by the rate, if you have a small mortgage then the fees have a bigger impact. How much is the mortgage for?

kingstreet

ACG wrote: »

You have a decision in principle?
You can not have an offer if you do not have a property to buy.

Dont get drawn in by the rate, if you have a small mortgage then the fees have a bigger impact. How much is the mortgage for?

You are forgetting the FD/HSBC two-step system.

You can apply for the mortgage, pay the fees etc getting an offer which is subject to the valuation when you find the property.

AnotherJoe

boogiesherbs wrote: »

Well I thought as mortgage applications take 4-6 weeks we would need our mortgage offer to allow us to make offers on property( if we get a quick offer on ours)

(2.19% 80%ltv 5yr fix)

You only need an agreement in principle, not to make the actual application. Indeed until you have a property in mind you cant actually apply since one of the key factors is what the property is they would be lending money on. So you wont pay any non refundable money until you really apply. How common that is, I dont know, cant say I'd be very keen on it, lots of purchases fall though.

boogiesherbs

Mortgage is for 220k , yeah they implied that to get an offer in principle I would need to pay product fee

boogiesherbs

Thanks for the advice so far

ACG

kingstreet wrote: »

You are forgetting the FD/HSBC two-step system.

You can apply for the mortgage, pay the fees etc getting an offer which is subject to the valuation when you find the property.

I did not know they did that.
Bit risky for me that! £1500 is a little more than I would be prepared to risk.

kingstreet

HSBC is like marmite.

People love them for the offer to lend and opportunity to secure the rate; whilst others can see all that's needed is an AIP and hate them for their system which causes untold delays because they choose to front-load a lot of the work most lenders do later in the process.

I would imagine a few of the former will move to the latter if they lose on or two of these fees.

boogiesherbs

That's why I'm concerned as to get an offer and complete in 6 months might be ambitious?