Searches before MIP?

rdchick

Hi knowledgeable people

So Nationwide are doing the valuation in 2 weeks time for our mortgage

The solicitors want to start searches

Do we wait for our MIP or just start the searches and hope it all goes through?!

canaldumidi

You should have got your MIP before starting to view properties.

Are you talking about a full mortgage offer?

But either way, if you've agreed a price, and the chain (if any) is complete, just get on with it. Searches, survey, mortgage, everything.

rdchick

We have a decision in principle but not the full mortgage offer yet.
There's no chain and solicitors are instructed so I guess it makes sense to continue on.

Thanks ☺️

TheJP

A decision in principle (DIP)/mortgage in principle (MIP)/agreement in principle (AIP) are all the same thing, the lender based on soft detail could lend you £X.

You are talking about a mortgage offer based on hard detail.

Its advised to not start any conveyancing until the chain is complete, if it is then yes you can start the process etc.

simon_or

Unless there is a rush to complete, or your conveyancer offers search insurance, I myself would not proceed with any property specific costs (such as searches) until Nationwide issues the mortgage offer for the property.

If you are fully confident that there will be no issues with the valuation and that your pending mortgage application will result in an offer then of course you may as well go ahead with incurring property-specific costs.

Deedoodee

I waited until I had a complete chain, the mortgage offer, and the survey results before paying for searches. 

user1977

It's no wonder the process takes so long if everybody is doing things in series! At some stage the "money-saving" option is counter-productive - the longer you stretch things out, the more risk of some other spanner being thrown into the works.

No point in sitting on your hands while you wait for your mortgage offer, unless you really think there's a material risk of not qualifying for a mortgage.

Zerforax

rdchick said:

We have a decision in principle but not the full mortgage offer yet.
There's no chain and solicitors are instructed so I guess it makes sense to continue on.

Thanks ☺️

We are in a similar situation and we've instructed searches so everything can progress in parallel. I could see no reason to delay things on one side. Searches can take 2-3 weeks, sometimes even longer to arrive!

saajan_12

Just depends on whats a bigger risk for your specific case. 

- If you're worried about the mortgage offer and losing £500-1500 on wasted search costs is a bigger risk then wait. 
- If you're reasonably confident about the valuation / affordability and losing 2-4 weeks is a bigger risk then do both in parallel. 

K_S

@rdchick Generally speaking, if a client asks me this question, my advice is to consider waiting for the mortgage-offer to come through before spending any money on searches or a buildings/homebuyer survey. If there are other pressing reasons (deadline to complete, vendor pushing for quick completion, 3 month mortgage offer from some specialist lenders, etc.) then the client can choose to accept this risk. 

The main reason I say that is because I can't guarantee that the property will be acceptable security for the lender (the valuation will determine that) or that the client will 100% receive a mortgage offer (unknown unknowns, etc.). The secondary reason is to cover my behind as I wouldn't want to be held responsible for any lost funds due to the mortgage offer not coming through.

twoLou

Deedoodee said:

I waited until I had a complete chain, the mortgage offer, and the survey results before paying for searches. 

As did I in the same order. I would hate to waste money if a mortgage offer wasn’t forthcoming for whatever reason.
My solicitor was more than happy to wait as was my surveyor.