Switching mortgage providers before completion

Hah

Hey, my partner and I have just found a better mortgage deal on a house we are planning on buying but we have already had mortgage approved (currently in underwriting) and the valuation has been ordered, so obviously we have a lawyer in place.

If we wanted to change to the new mortgage provider and withdraw from the current offer - what do we do regarding the solicitors? Do we just inform them we've changed lenders? Or do we have to get a new solicitor?
Thanks

:j

eddddy

Mortgage lenders insist that you use a solicitor who is on their panel. If your current solicitor is on the new lender's panel, you don't have to make any changes.

If your current solicitor isn't on the new lender's panel, you have 2 choices:

1. Change solicitor to one who is on their panel

2. Continue with your current solicitor for the bulk of the work, and have a second solicitor who is on the lender's panel to look after the mortgage lender's interests. (i.e. The second solicitor just does a relatively small amount of work)

Hah

Thanks so much. Ok I'm positive the new lender would be on their panel and also vice versa.
So would it just be a case of advising the solicitor we've changed lenders? Will another valuation then have to be ordered as the original lender has already ordered one? Thanks!

G_M

Yes the new lender will start from the beginning:

* new application
* review of your finances/credit history
* Valuation of property etc

Yes you need to ask your solicitor "Are you on the panel for xyz Bank?" If you continue to use the same solicitor, he won't need to repeat the Enquiries/searches etc. But if you have to change solicitor, the new one will probably want to repeat that work.

You need to explain to your seller, as the purchase will be set back and delayed.

RedFraggle

If the property hasn't been valued you don't have a mortgage offer yet.
Bear in mind different lenders have different criteria so if there is anything complex wrt finances a different lender won't necessarily accept you even though another one did.

Hah

Hey thanks all. Ok, so the valuation is booked for next Thursday and this would have to be cancelled if we were to change mortgage provider (obviously depending on acceptance)?
Just going to assume we were accepted then we'd just have to advise the lawyer and the new lender would arrange a new valuation? I just want to be sure before we do anything.

G_M

If you're going to change, tell the current lender asap - you may save yourself the original Valuation fee....

Hah

Will do, will discuss tomorrow and make a decision by Monday. Thanks so much. All very helpful! ☺