Same day decision?

marmitemum

My daughter and son in law are FTBs and got an AIP from a lender last Saturday and had a further meeting today to apply properly for a mortgage as they’ve had their offer accepted on a property. They came away with an offer - is it usual to get a decision on the same day? I am concerned too that they may have been pressurised - the adviser wanted to take the product fee there and then, but my son in law said they wanted to think about it overnight. Her reply was that she would take it tomorrow at 11am unless she heard from them.

They spoke to us about it tonight and we have advised them to delay the decision and speak to an independent mortgage adviser. They have now texted her and told her that they want to take more time to think about it and consider other options and that the bank are not to take the product fee, They’re contacting a mortgage adviser from here this evening and he will deal with them remotely. He’s already optimistic about being able to offer them a better deal.

I am just very concerned about the speed at which this lender conducted things - giving an instant offer and seemingly pushing them into accepting right away. How normal is this?
Also, they are applying for this mortgage based on the future salary of my son in law ( he starts end August) - yet she did not tell them when the funds would be released (I understand that with future salary applications it varies from lender to lender when they would pay out) and they forgot to ask. So it feels to me as if this whole process was rushed and could have caused them lots of problems. Am I right to be concerned? It all feels a bit unethical.

ACG

If the lender took longer to underwrite the case, how would that have been any better for you daughter?

Most people apply for a Mortgage because they want the Mortgage, not because they want to think about it. The time to think about it is before you apply and carry out credit checks unnecessarily.

I would say 99.9% of people would be over the moon if they had a full mortgage offer in a day.

kingstreet

They walked into a lender's office and walked out with a commitment to lend? By doing so, they accepted they were getting what the lender had to offer and not necessarily the best deal.

This is a lender which will accept new employment for an applicant in a few months' time?

An independent broker should have been the first port of call but I'd say the lender has done absolutely nothing wrong here.

marmitemum

There is nothing on the offer about when they would release the funds. My daughter said that the advisor was not the one they had booked with as he was ill, but an advisor from another branch who seemed stressed that she had been told to come in and see them instead of going to her branch (and making her late there).

When they had their AIP meeting last Saturday, they scheduled their next meeting for the following Saturday, to give them time to see an independent broker first. It was the request of the lender to bring the meeting forward to today, Looking at the offer, it is nothing special - just the interest rate that shows on their website mortgage calculator.

kingstreet

Mortgage funds are released to the solicitor acting for borrower and lender on receipt of a certificate of title. This is usually submitted between exchange of contracts and completion in England/Wales.

marmitemum

Yes I am aware of that being a home owner myself. What they need to know is when the lender would release the funds given that my son in law does not start his new job till the last week of August.

ACG

After the Mortgage is offered, a copy gets sent to the solicitors. The solicitor if not already will start the searches and enquiries once those have been satisfied they will then set an exchange and completion date.

Typically that will take between 4-8 weeks depending on the speed of everyone else in the chain.

So realistically you are not going to be completing until at least early july but possibly even early August. The completion date would not be set yet, it would only be set in a few weeks and for a date where everyone involved agrees that is all ok (which includes your daughter).

That process will not be any different no matter what lender you go to.

Your daughter or son in law could have refused to bring the appointment forward or chosen a different date.

marmitemum

An independent broker has told me that lenders may not release the funds till my son in law has started his new job, that is why I am asking.

minimike2

You can't win in this world. Take too long, people complain. Offer an amazing speed of service, people complain?

Strange post.

marmitemum

ACG, yes they could have refused, but they are young and inexperienced and feeling rather overwhelmed by everything.

sheepy21

I didn't know it was possible to get a mortgage the time of application :eek: what about going to underwriter and house valuation? I'd be bloody thrilled if I had an offer in one appointment!