First Time Buyer - Mortgage and conveyanceing questions

RubyShoes

Dear all,
I am after some advice, as a first time buyer, this is all a new experience, and I dont want to make any costly mistakes.

I contacted the mortgage advice bureau to arrange a mortgage. They have sourced me a mortgage and I have an agreement in principle with the Leeds Building Society. It is a 100% mortgage on a shared ownership property, for 79,995.

Now, I have the documentation and have thoroughly read it though, and am not happy with several things, and wondered how I can change this..

1) If you are arranging your own building insurance then s £30 'admin' fee becomes payable. I dont have a choice. I have to pay the shared ownership buildings insurance, it is all done though them, so why should I have to pay an admin fee, when they are not doing anything to earn it!

2) Lenders conveyancing fee - payable on completion £117. Huh? Why am I paying their conveyancing fees? Or is this already included in my own conveyancing fees?

3) Early repayment fee. Ive heard a lot about these - I am planning to remortgage at the end of the fixed rate in Nov 2009, but this will cost me £1656.08. If I remortgage with the original lender, just to one of their fixed rate deals, will this still be payable? I plan on using fixed rates for a long while yet, having a young family, I need to know the payments will stay the same.

4) There is another form in the pack, which say's 'Arrangement Fee Waiver Agreement' which to summerise, says that unless I take out their life policy or protection insurance and keep it for 38 months, then their £295 fee becomes payable by me. Now when I asked if there were any fee's for their service, I was told no, they earn comission from the lender. Which I can see in the paperwork I have, that an ammount for £279.83 is payable to the mortgage advice bureau from the Leeds Building Society. However, these 2 commissions appear to be seperate. So in other words, MAB are going to get commision from LBS for my mortgage. This is payable as long as I take the mortgage. Then the MAB are trying to make an extra £295 if I dont take their policy out for Life cover.

Their life cover doesnt even cover what I need!

Would it be terribly naughty of me to go to LBS directly, and obtain a new mortgage quote and go from there? And get rid of the middle man so to speak. I want the adviser to get his commision, but not at the expense of me paying another £30 per month on a policy that I dont want, or need.

I have already had a credit search from LBS, would that cause any problems if I went to them directly?

5) I have to send a whole bunch of docments off, wage slips, passport etc, but they are asking for 'shared ownership papers' and no one quite knows what this means.... does anyone else??

Final question is to do with conveyancing! How do you go about finding the best deal and a speedy solicitor, as this is looking to go through within 4-6 weeks.

RubyShoes

Anyone?

I would really appreciate any advice on just one of the questions!

MortgagesInc

Hi Ruby

Going through in order:-

1) Most lenders charge this now - they claim that they have to assess your buildings insurance to make sure that it's suitable - veryunfair in cases like this I agree - some will waive it if you agree to take out their contents only.

2) This is just an indication of solicitors fees for them to be able to calculate an APR figure - you shouldn't have to pay anything more than your own legal fees

3) There shouldn't be any early repayment charges on expiry of the current rate - check the dates on the KFI again to see if this only applies until the rate expires

4) It would be a bit naughty - but no worse than your adviser falsley telling you that you don't charge any fees. To hide them in this manner is very very wrong, and is the kind of thing that gives the adviser community a bad name - I wouldn't expect that from one of the biggest firms in the country.

5) You would normally receive a document from the Housing Association providing the property - it's this document Leeds need to see as they want to make sure that certain clauses appear in there to protect them as the lender. Speak to your Housing Association

RubyShoes

Thank you very much :beer:

I just looked at LBS website, and as far as I can see, the ERP only applies in the fixed rate term. Phew! I missed a word out when I was reading!!

MortgagesInc

Good luck!