Time length for mortgage application

LEW82

Hi forum,

I had an offer accepted on a house 7 weeks ago.  I am 85% cash buyer and need a small mortgage.  I am debt free and it's not an issue at all in terms of my credit status.  It took the banks 20 working days to produce signed off evidence of my ISAS, savings accounts for the mortgage company.   The mortgage company has now had my paperwork for nearly 3 weeks (no progress). The seller is threatening to pull out because the mortgage company has not yet sent around a valuer and she expected a completion date by now because I am chain free and mainly a cash buyer.    What would the usual time frame be?    Things seem slow at the moment.   I think that I am about to loose the house.  

Many thanks, LEW

simon_or

Whether you have a 15% deposit and an 85% LTV loan or an 85% deposit and a 15% LTV loan, the work the bank has to do to process your mortgage application is pretty much the same. In fact in some cases it might take additional time (either now or at conveyancing) due to having to verify the source of a large deposit.

Among other factors, how long a bank takes can wildly differ based on the bank itself but it's too late to factor that in now given that you're already 3 weeks into the process. And then you have all the mortgage turmoil over the last 2-3 weeks which has probably screwed up processing times.

Which bank is it? Has the valuation been done? If you're using a broker they should be able to give you a rough timeline at least.

LEW82 said:

Hi forum,

I had an offer accepted on a house 7 weeks ago.  I am 85% cash buyer and need a small mortgage.  I am debt free and it's not an issue at all in terms of my credit status.  It took the banks 20 working days to produce signed off evidence of my ISAS, savings accounts for the mortgage company.   The mortgage company has now had my paperwork for nearly 3 weeks (no progress). The seller is threatening to pull out because the mortgage company has not yet sent around a valuer and she expected a completion date by now because I am chain free and mainly a cash buyer.    What would the usual time frame be?    Things seem slow at the moment.   I think that I am about to loose the house.  

Many thanks, LEW

LEW82

Thank you for replying.  It took 20 working days for me to verify the source of the large deposit after the initial offer.  The Nationwide now have the paperwork.  The seller is threatening to pull out because a valuer has not been yet (offer accepted 7 weeks ago) and the estate agent has said that he would expect for us to be taking talking for completion by now.   The estate agent has threatened if I don't get a valuer over the next week, they will pull out of the sale. 

Is he being reasonable?  

simon_or

To be honest, if you had an offer accepted 7 weeks ago and the agent hasn't had a valuer call around yet, or confirmation of a mortgage offer from you, then I think it's not unreasonable to start putting pressure on the buyer. Plus they only have your word for whether or not you're good for the mortgage, and all the mortgage turmoil in the news over the past few weeks might have spooked them.

If time is critical then I would suggest speaking to a broker, stressing that you need a bank that is quick right now and put in another application. Use one of the free brokers, add any product fee to the loan so there's no cost involved. Most high street banks will instruct a valuation straight away and that'll buy you some time and either Nationwide or the new bank will come through in time and you can complete.

LEW82

I've already got a broker and she has had my paperwork for 2 1/2 weeks without action.  Is that reasonable?  She promised over a week ago that she would chase up the Nationwide and I've heard nothing from here.  My estate agent has tried to call her and she has not returned calls.  I paid £580 for her services.

housebuyer143

LEW82 said:

I've already got a broker and she has had my paperwork for 2 1/2 weeks without action.  Is that reasonable?  She promised over a week ago that she would chase up the Nationwide and I've heard nothing from here.  My estate agent has tried to call her and she has not returned calls.  I paid £580 for her services.

No it's not reasonable. This is from their website. They should be reviewing your documents within 3 days. If nothing has happened in 3 weeks and your broker isn't chasing it then that's awful. Have you called nationwide yourself to ask what's happening? 

Did you pay the £580 on agreement in principle or ob mortgage offer? If it's the former then she has no incentive at all to get you your mortgage as she has been paid already.

amnblog

None of this is usual and there is something wrong here.

If your Broker is not responding, contact her Manager is she is with a large firm.

If she works alone, she may be with a Mortgage Network (check paperwork to see who authorises her) and contact the authorising firm.

If she works alone, and she is directly authorised by the FCA,  (check paperwork to see) you don't really have anyone else to contact other than the Lender.

LEW82

Thanks everybody.  She chased it up today and the offer will be made within 3 days and the estate agent happy. I am pretty furious.  She nearly ruined my transaction and I only paid her to make it smooth as I am doing this alone miles from home and have no family in the South East (where I am buying).   Not relevant, but it makes you feel alone and like I needed the help of a broker.  I am tempted to complain.  For now, I am just happy that the seller is pleased and knows it is not my fault.  The seller sent me a kind message saying that she understands.   

I don't trust them at all, but 4.25% APR sounds like a good rate (now) of interest given my large cash deposit and I couldn't find better when I briefly looked online. Aside from losing £580, fingers crossed she did actually get me the best deal.

kingstreet

Presumably a desktop valuation was done and the EA not getting a call for access from a surveyor raised the temperature a little...?

LEW82

Sorry not logged in for a while. Yes, a desk evaluation was done.  I've had some pretty nasty surprises though after my searches (necessary electric certificate missing after a full rewiring), also the roof had been damaged (before my viewing)  and there had been a promise that it was fully resolved (upper floor covered in storm damage).  I accepted that and was prepared to redecorate.  I just found out that the roof leaked again (2 weeks after my offer) and cost £1800 to repair.  They told my solicitor in quite an indirect way and the invoice looked exactly the same as the earlier one that I inspected on making the offer.   I was looking carefully through the documentation and noticed that the date was different. 

Looks like I will be pulling out due to the roof and the electrics (an indemnity could be provided against action by local authority) doesn't please me.

Incidentally, I have known mortgage advisor for a year now and was brilliant before the lapse and is now brilliant again. She must have been at a pinch point in her work.