FTB - Instructing Solicitors

jchantler

Evening all, so following a viewing this afternoon we submitted our offer to the buyer and the estate agent - and it was accepted! :j

The EA has said that in order for us to proceed, they need to ensure our offer is 'qualified' - essentially checking that we're able to get a mortgage to cover the cost of the house while also attempting to get some money out of us. So we've got a meeting on Monday with their Mortgage Advisor who could "potentially save us hundreds" on the product already recommended by Trussle, the online mortgage broker.

Anyway, I've been looking at quotes for conveyancing since the offer was accepted and I've just come across something that I wasn't aware of, that leads to my first question - does your conveyancer/solicitor have to be on your lender's panel? Also at what point should I be instructing a solicitor and a surveyor? Do I wait until Monday when I'm submitting the mortgage application or should I wait?

daveyjp

Remember the EA is not working for you.

Decline their offer of mortgage advice, they don't need to know your financial details. It could work against you.

You can use whoever you like for conveyancing and surveys.

TamsinC

I wouldn't use the EAs mortgage advisor or their solicitors - use an independent broker. An AIP or DIP is all they need to see at this point

Cheap online solicitors/conveyancers aren't always the best to deal with - better to spend a couple of hundred more and find one with a good reputation and local is good (though not necessary). Find a solicitor now - you can instruct them to wait until you have your mortgage offer before they do any searches and so not cost you anything if you cant get a mortgage. Surveyors - depends on the type of survey you want. The one I'm having had a 5 week wait so I got in asap. And yes, your solicitors need to be on the panel of the lender.

sal_III

daveyjp wrote: »

You can use whoever you like for conveyancing and surveys.

This i bit misleading, especially in light of this question by the OP:

jchantler wrote: »

does your conveyancer/solicitor have to be on your lender's panel?

You want your Conveyancer/solicitor to be on the lender approved panel, for smooth transaction, otherwise it will become messy and not something that you will be comfortable with as FTB.

G_M

Your mortgage lender will want a solicitor to act for them in protecting their loan. All lenders have a 'panel' of approved solicitors they work with.


If you instruct a solicitor who is not on the panel, then they'll instruct a 2nd solicitor who will duplicate much of your solicitor's work. It makes far more sense for the same solicitor to act fo both (you and the lender).


So when selecting your solicitor, don't just ask for a quote - also tell them which lender you are borrowing from and ask them to confirm they are on that bank's panel.


Personally I'm a strong advocate of using a local firm you can visit - but others feel this is not important. Your choice.

KL0001

daveyjp wrote: »

Remember the EA is not working for you.

Decline their offer of mortgage advice, they don't need to know your financial details. It could work against you.

You can use whoever you like for conveyancing and surveys.

Although the EA don’t need to know your financial details, as a seller, I wouldn’t have taken our house off the market unless our buyers were able to show they could afford the house (ie I’d expect the EA to see an AIP or evidence of cash purchase). I would be willing to accept an offer, but would continue to market the property until i was informed that our buyers could afford the house. So if you choose not to show you can afford the property you may risk this and ultimately loosing the property if a better offer comes along.

Ideally, yes, the solicitor should be on your mortgage lenders panel.

mije1983

KL0001 wrote: »

I'd expect the EA to see an AIP or evidence of cash purchase

The EA who I bought my house through spoke to my broker who confirmed to them that I had the funds required to purchase. My AIP would have been useless for the EA anyway as it was nowhere near the purchase price, so if they were relying on the AIP to prove I could afford it they would have been sorely disappointed!

The EA may want to see it, but that doesn't mean they need to see it to ensure the buyer can indeed afford the offer they have made.

ACG

jchantler wrote: »

Anyway, I've been looking at quotes for conveyancing since the offer was accepted and I've just come across something that I wasn't aware of, that leads to my first question - does your conveyancer/solicitor have to be on your lender's panel?

Yes, although typically lenders have hundreds or thousands od solicitors on panel. General rule of thumb is that so long as it there are 2 partners and not a small 1 man band you should be fine. Unless you are looking at adverse lenders, then typically they need 4 partners.

Also at what point should I be instructing a solicitor and a surveyor? Do I wait until Monday when I'm submitting the mortgage application or should I wait?

You can find a solicitor (you will need their details on the application form), but ask them not to do any searches or any work until your Mortgage offer is issued.

The valuation (assuming you are going with a basic valuation) will be instructed by the lender. Some do it on day one, others do it once the underwriting is complete.

Mutton_Geoff

Finding and appointing a solicitor ahead of the game is getting "your ducks in a row" and presents you as a more organised and serious buyer with agents and vendors.


You have time to shop around, get recommendations etc without the pressure of some shiny suited idiot pressing you for info to produce the useless piece of paper called a Memorandum of Sale.


For the last purchase I made, I rang round a few solicitors local to the property, I also got a couple of quotes online and asked the selling agent who appeared to be the best conveyancers in their experience. The agent recommended an online business via a (commission based?) link but I chose a local bricks and mortar firm who the agent then derided and warned me of the long delays we could expect.


Turned out the local firm was best, and second cheapest. Even the agent commented on completion how surprised they were with the speed etc.


It certainly helped having an offer in principle and solicitors details ready to back up the cheeky offer on the place as it presented us as serious buyers from the start.

datlex

jchantler wrote: »

Evening all, so following a viewing this afternoon we submitted our offer to the buyer and the estate agent - and it was accepted! :j
The EA has said that in order for us to proceed, they need to ensure our offer is 'qualified' - essentially checking that we're able to get a mortgage to cover the cost of the house while also attempting to get some money out of us. So we've got a meeting on Monday with their Mortgage Advisor who could "potentially save us hundreds" on the product already recommended by Trussle, the online mortgage broker.
Anyway, I've been looking at quotes for conveyancing since the offer was accepted and I've just come across something that I wasn't aware of, that leads to my first question - does your conveyancer/solicitor have to be on your lender's panel? Also at what point should I be instructing a solicitor and a surveyor? Do I wait until Monday when I'm submitting the mortgage application or should I wait?

Brilliant news. How do you know though what mortgage you might get if you have not done an AIP before hand? Don't assume you will get a certain amount. Mortgage Brokers will charge a fee so you would need to budget for you. They will seek to save you money over the long term. They can take time. I personally felt the time they took was too long, so went via Halifax. I used Halifax surveyor too as they had a deal for £360 which was a level 2 survey plus valuation.

TamsinC wrote: »

I wouldn't use the EAs mortgage advisor or their solicitors - use an independent broker. An AIP or DIP is all they need to see at this point
Cheap online solicitors/conveyancers aren't always the best to deal with - better to spend a couple of hundred more and find one with a good reputation and local is good (though not necessary). Find a solicitor now - you can instruct them to wait until you have your mortgage offer before they do any searches and so not cost you anything if you cant get a mortgage. Surveyors - depends on the type of survey you want. The one I'm having had a 5 week wait so I got in asap. And yes, your solicitors need to be on the panel of the lender.

I would always want a local solicitor, they know the local area. Can drop in if need to. One of have used isn't expensive and is in same town so is known to the estate agent and mortgage representative at Halifax was also familiar with them.

eddddy

jchantler wrote: »

Evening all, so following a viewing this afternoon we submitted our offer to the buyer and the estate agent - and it was accepted! :j

The EA has said that in order for us to proceed, they need to ensure our offer is 'qualified'

<snip>

You're being dragged into the slightly murky world of property buying.

Lots of people are going to be fighting over you, because they want to make money out of you. Here are a few things to bear in mind...

• 1. The EA has a duty to their client (the seller) to check that you have the means to pay for the property (e.g. See details of you Mortgage arrangement and deposit).

• 2. The EA (and or their mortgage adviser) can make money out of you by selling you a mortgage.

• 3. The EA works for the seller, so it may be better for the EA not to know too much about your financial situation (e.g. whether you can afford more than you are offering.) Note the conflict between this point and points 1 & 2.

• 4. The EA can also make money out of you, if you agree to use their recommended Solicitor or Conveyancer. i.e. They might not recommend the best one, they might recommend the one that pays the highest referral fee.