Arranging mortgage online...

Lips

Hello,

I am thinking about getting a mortgage again, in order that I can purchase a bigger house. I haven't had a mortgage for a number of years, so I met with the in-house Mortgage Advisor in the estate agency that is selling my current house. We had a long meeting and discussed a number of options, which eventually resulted in her producing a personalised illustration based on a Nationwide mortgage - a package I was quite happy with. However, as I hadn't yet seen a house I wanted to buy, I didn't take the enquiry any further.

Now, 6 weeks later, and with my own house sold, I'm starting to think that I should get a mortgage offer nailed down so that I'm ready to jump when I find the right house. I found the Advisor in the EA helpful, and my instinct is to return to her to get the deal progressed, but my question is this...

Is there any advantage (cost or otherwise) in me cutting out 'the middle(wo)man' and just doing an online application directly with Nationwide?

What are the pros and cons?


All advice appreciated...

- Lips

herbiesjp

You cant get a full mortgage offer from a lender, until you have found a property and submitted a full application.

What you can get is an agreement in principle, however that will not reserve the rate for you with the likes of NAtionwide etc

Lips

Thanks for response, but how I'm really stuck. Isn't that what a reservation fee is for? To ensure that the offer remains valid while you go off and look for a house? Does that then mean that you could apply for a mortgage, be credit checked and approved, pay a reservation fee, and then STILL be declined at the last moment?

- Lips

herbiesjp

Not seen any reservations fees lately

Booking fees and arrangement fees maybe - however these are only paid when a full application is done, not when an agreement in principle is done to see if they will lend the right amount.

So you only book the rate upon full application with most lenders.

You can get declined by any lender at any time, right up until requesting the funds, for whatever reason, and the lender does not have to even give a reason

Lips

Great. I can look forward to being unable to unclench for the next few months then... :rolleyes:

- Lips

Dan_Collins_2

With Nationwide you can secure the rate. An agreement in principle can be obtained and then you can secure the rate for 3 months. Say that you will add any admin fee and you have no costs to do this. You can take it or leave it in 3 months. I am not sure if this can be done direct, I think it can from talking to my contact in the our local branch but the broker will be able to doit as long as he is using the online system

If you use him he will do the donkey work for you. Keying an app with no experiance of the online system is a pain, if you feel happy with him go for it.

herbiesjp

That is the next step after the AIP though.

So you run the AIP, get accepted or declined, and then it asks you if you want to pay the fee to reserve the rate.

But depending on how long it takes to find a property, it may or may not still be the best rate, so you could then have paid for a product that is no longer the best option for you - could go either way

Dan_Collins_2

herbiesjp wrote: »

That is the next step after the AIP though.

So you run the AIP, get accepted or declined, and then it asks you if you want to pay the fee to reserve the rate.

But depending on how long it takes to find a property, it may or may not still be the best rate, so you could then have paid for a product that is no longer the best option for you - could go either way

Read my post, you tell the system to add any fee, bobs your uncle you have reserved the the rate with no cost!! I did it twice last week!

herbiesjp

Early morning blurry vision!

Dan_Collins_2

herbiesjp wrote: »

Early morning blurry vision!

Get that first tea of the day down ya!

:beer: