Mortgage Advisor just called saying wait times are 30+ days- rights? what to do?

krissy08

Hello all,

I have set up a limited  company and obtained a Decision In Principle via a broker. I then paid £699 in fees after engaging a solicitor and agreeing as price on a property.

After all that the mortgage advisor has today called saying the lender has waiting times of 30± days to move to offer and to ensure I don’t miss out on this property, they advise me to switch to a more expensive deal (as they no longer have any deal as good as there one I was offered). I passed up another broker to go with this one!

Is this usual on the industry? Am I entitled to claim my fee back as I am essentially being told- either wait for those days after which the lender ,might ask for more documents leading to a further 30 days wait or go for a different more expensive product. Not much of a choice.

If I wanted to switch to someone else and get my fee back would I be able to?

They are a seemingly reputable mortgage company.. registered with the usual bodies and all that

I look forward to your reply. Thanks so much

anselld

It seems unusual to pay a fee up-front.  However if those are the terms you agreed then check your contract for any terms on cancellation, otherwise you are stuck.  There is no obligation on a lender to lend in a certain timescale (or at all) after DIP.

krissy08

The fee I mentioned was paid to the broker not the mortgage provider- I am basically not happy that I was told this post signing up with them and paying their fee

unkle

It's all down to the agreement with the broker, not the mortgage company then.

What are the terms of reference/contract say? I've used brokers in this instance before and usually it's a small fee up front (about £150) and then a further fee/the rest when the offer is received.

[Deleted User]

Lenders service standards change all the time but even the high street lenders are taking 3 weeks to do intial reviews of cases at the moment. 
You can always ask for your money back but not sure what else you hope to achieve.  Any other broker will have the same wait times with the lenders.

They advise you to change lenders due to speed of service, its not an uncommon thing to tell a client.  You either wait for the best deal or switch to a more expensive but quicker one.  Its your call so if you lose out on something due to deciding to wait then its not the brokers fault. 

krissy08

All comments noted-Thanks
 Is it worth calling the bank myself to check what their waiting times are during this period? Basically I  am struggling to believe the 30 days plus waiting time. Also I have done a hard search to get this D.I.P mortgage- this will most likely mean another credit search...isn't that an issue?
The lender IS **NottinghamB.S'- is the waiting time of 30 days reasonable during this period? Maybe the seller is in the same position?- I can't ask as I don't want to scare them but do I have to let them know if we will be waiting? Arrghhh 
if this is standard at the moment, am I better off waiting for the lender anyway?

Hannimal

Honestly your broker is doing the right thing. Several lenders now have ridiculous waits. If you and the seller are willing to wait an extra month then wait an extra month. If not, then ask your broker for other quotes. 

I waited over a month for a mortgage offer with Platform. Everything with them has been so incredibly slow that I couldn't even renegotiate price after survey showed I'd need a new roof because my seller said they'd pull out if I went to them (it would've been another 1 month wait). So your broker is being sensible by warning you. 

lika_86

Are you concerned you might not get the mortgage? The conveyancing process will take months, so you could set them off in tandem

haras_n0sirrah

At the moment I am giving all clients the option of cheapest or quickest (which may cost slightly more a month)
Many lenders are at 3-4 weeks underwriting. I dont know about Nottingham as have nothing in with them but nationwide for example is currently 19 working days and there is nothing we brokers can do about it to get it done any quicker

steve866

lika_86 said:

Are you concerned you might not get the mortgage? The conveyancing process will take months, so you could set them off in tandem

This is what I did. I had almost a months wait, due to NatWest being busy and the time it took to get a valuation survey. The mortgage offer still came a month before exchange date due to convayencing,

krissy08

So grateful for all the replies- can I keep two applications open with 2 lenders. Go for the quicker turn around time which has a lower percentage and lower fees and keep the other on the slow burn as well.
Is there a negative to this bar the 2 credit searches?