FD mortgages - how long for approval?

rooo

We actually got our Mortgage offer yesterday, so we've just got to sign it and send back.

Whats the next step from here?

dweeby

totally_confused wrote: »

Major BREAKTHROUGH or so I hope... Legal pack has already been sent to solicitor last night and she should receive it today. Will be giving her a call later in the afternoon to check if she has received it and to see if we can fix a date for exchange/completion.

We just got the same news, look out of the window - I'm the one jumping up and down!

We have everything in place, FD have our offer acceptance back and the valuation is fine. I just emailed our solicitor. Evidently the legal pack goes via DX (a secure bank mail), but as FD are in Leeds and my solicitor is in Wakefield (~10 miles away) should be quick.

Now we're "running on gas" as they say. This is probably where any re-mortgagers will have a different route to us, as their process is slightly different. Hopefully we'll be able to set exchange/completion dates also!

Rooo - your next stage is the legal pack, I think.

totally_confused_3

dweeby wrote: »

We just got the same news, look out of the window - I'm the one jumping up and down!

That's great news Dweeby!!!! Celebration time i guess!!!! :beer:

Just received news from my solicitor that we are aiming to exchange next wed and completion on 20th. But there are still some docs outstanding from the council and depending on when these docs can be received, we might have to exchange and complete both on 20th. Hopefully, it might make a nice Easter present!!!! :rotfl:

mrsm

It must be the mortgage teams day to use the phone today, I've just had a call too. They're waiting for the valuation and my documents will be sent out in the next few days:T I pointed out we don't want to complete until the end of the month as we're tied in and she confirmed they'll request a redemption figue towards the end of the month to ensure we dont pay any fees, As an aside being offset does it make any difference what day we pay. Our mortgage usually comes out just after my Husbands salary goes in but would it be beneficial to keep the money in the current account longer ?

totally_confused_3

rooo wrote: »

We actually got our Mortgage offer yesterday, so we've just got to sign it and send back.

Whats the next step from here?

You will need to get valuation sorted and then wait for legal pack to be sent out.

InMyDreams

mrsm wrote: »

I pointed out we don't want to complete until the end of the month as we're tied in and she confirmed they'll request a redemption figue towards the end of the month to ensure we dont pay any fees, As an aside being offset does it make any difference what day we pay. Our mortgage usually comes out just after my Husbands salary goes in but would it be beneficial to keep the money in the current account longer ?

I'm in a similar boat, mrsm. We are tied in for 4 more weeks, with next payment due two days before tie-in ends (and husband's salary going in a few days before that). So if we complete on the day we want to, the redemption figure will already be out of date as we'll have made another payment. Apparently the payment will still go through, and then will be refunded a couple of weeks later. Presumably not the whole amount though as there'll be two more days of interest to pay. But now I'm wondering if the redemption figure will have to also include the (rather large) ERC as they'll have to request it before the deal ends if I'm to complete immediately the deal ends. Surely they can't add that on to the new mortgage too and refund me? Not that I'd mind if they did.

iwassomeoneelse

mrsm wrote: »

As an aside being offset does it make any difference what day we pay. Our mortgage usually comes out just after my Husbands salary goes in but would it be beneficial to keep the money in the current account longer ?

I thought it didn't, but maybe it does. You have to pay interest once a month, and it would be best to keep that in your current account as long as you can to benefit from the offset of that amount...

Looks like I'll have to change my payment date!

iwassomeoneelse

InMyDreams wrote: »

We are tied in for 4 more weeks, with next payment due two days before tie-in ends (and husband's salary going in a few days before that). So if we complete on the day we want to, the redemption figure will already be out of date as we'll have made another payment. Apparently the payment will still go through, and then will be refunded a couple of weeks later. Presumably not the whole amount though as there'll be two more days of interest to pay. But now I'm wondering if the redemption figure will have to also include the (rather large) ERC as they'll have to request it before the deal ends if I'm to complete immediately the deal ends. Surely they can't add that on to the new mortgage too and refund me? Not that I'd mind if they did.

They should be able to calculate a redemption payment as of the last day of your tie in, so the ERC should be excluded (Nationwide gave me one over the phone exc the ERC). Not sure about that last payment though, as they wouldn't know until a few days later if it bounced - and by that time they'd have surrendered their security.

InMyDreams

iwassomeoneelse wrote: »

They should be able to calculate a redemption payment as of the last day of your tie in, so the ERC should be excluded (Nationwide gave me one over the phone exc the ERC). Not sure about that last payment though, as they wouldn't know until a few days later if it bounced - and by that time they'd have surrendered their security.

Oh well that's good.
They told me the redemption figure wouldn't include the last payment which obviously I will make on top, so they will end up with an extra payment which they then won't refund until they are sure it's not bounced. Fair enough. As the redemption figure is only valid for 7 days (so they told me) I guess FD will have to wait until a week before my tie-in ends anyway before they ask for one, so hopefully they will calculate it without erc. Wonder what happens about those extra two days of interest though. Or indeed up to a weeks worth of interest if the redemption figure (valid for a week) is calculated at any other time.

dweeby

It's gone quiet here, all of a sudden... hello, is anybody there?

My solicitor has just confirmed he has had our legal pack, so I think that's us finished.

Possibly my final updated timeline here, might update it again - but I think (hope) the FD part of the adventure is over.

To reitterate, if you're interested in a First Direct mortgage application timeline, for a house purchaser (as opposed to a re-mortgager) with a few queries during the process - check out my timeline.

Thanks for everyone's moral support, and good luck with all your applications :wave: