FD mortgages - how long for approval?

InMyDreams

allan673 wrote: »

she also said that it could be completed hopefully by the end of the month.ive got a mortgage payment due to go out of my account on the 28th of march (current lender), so i dont know how this will affect the redemption figure if they ask for it before this payment goes out ???? i will keep this updated as soon as i get some more news.

could or should i cancel the direct debit with my current lender?

cheers............

NO!!! Whatever you do, don't cancel your mortgage payment.

I'm in a similar position. My payment day is 1st of the month but my last tie-in day is the 2nd so I'm hoping to complete on the new mortgage on the 3rd. If this is to happen, there is no way the redemption figure will take into account my last payment. My current lender told me that obviously I will still have to make the usual payment on the 1st but this will be refunded. This will probably take about 2 weeks as they have to make sure the payment has actually cleared before they can refund.

InMyDreams

Have just spoken to FD as we received our offer docs this week. Frustratingly, we have not been able to sign and return them until today, but apparently that hasn't slowed anything down. The legal docs have all been prepared anyway (written yesterday) and are now 'being checked' and we should receive them middle of this week. Valuation has been received and OKed for purpose. So I asked (out of interest) what value they had put and am shocked by the result! Yes, I knew that it was going to be conservative, but :shocked:

We paid £211K for this house over five years ago. An identical house next door sold 2 years ago for £250K. A house opposite sold last year for £320K (admittedly a -bit- bigger, but same style and same number of rooms and bedrooms etc). It has been seven years since a house on our street has sold for less than £200K, and our is by no means one of the smallest of those.

They have valued ours at £175K!?! _pale_

And 'OKed for purpose' just means OK to use for a mortgage. Not necessarily the mortgage we want.

Now I wouldn't normally care what they or anyone else thought our house was worth, but we want to borrow £146K. I thought we had a very comfortable margin there, even if only valued at £200K, but with a valuation of £175K, we now have a LTV of over 83%. Apparently someone will phone us to 'discuss our options' as 80% of £175K is only £140K. :sad: And the only reason the operator told me there was a potential issue was because I specifically asked what the valuation was.

I am hoping that they will still lend us the £146K but insist that we make non-re-drawable capital repayments (rather than offset) as per the note on page 2 of the offset guide they sent out with our offer. And if worst comes to worst, we can take £6K out of our ISAs that were earning higher interest, but hey.

And there was I thinking that it was our income multiple that might jeopardise our application. I thought we were looking at 50% to 60%, with 75% as a worst case scenario.

Out of interest, how conservative have others found their valuations?

jem16

InMyDreams wrote: »

Out of interest, how conservative have others found their valuations?

My son's valuation was done by a local firm of chartered surveyors and organised by my son's solicitors as we are in Scotland. My son offered £103,166 and it was valued at £103k which was really good. House prices here have not been affected as much as in England.

Initially my son had asked for £82,500 but when FD agreed to accept his valuation they would only offer him £82,400 as this was 80% of the £103k even though he is also doing a repayment style mortgage.

I hope it goes ok with your discussion.

mrsm

OMG Inmydreams:eek:. That is a huge difference. I hope it all goes well with your discussions. I have to say your post has got my heart racing a little. We're lucky in that we're looking at a possible 34% LTV so the value would have to go down a long long way but its certainly got me thinking.

I'm fighting the urge to call, I'm guessing if they've not taken the £99 fee yet they've not done the valuation? We received our original offer doc last Saturday but only got the correct one Thursday.

I'm not sure how much more my nerves can cope with :shocked:

allan673

valuation - re.inmydreams
regarding the valuation, mine seems spot on. they valued mine at 160k, a house on our street sold 3 months ago for 157k (not as nice as mine), and one sold 6 months ago for 165k.

LostSocks

Inmydreams and Jem16 - hope your valuations and mortgages are sorted for you.

I've just been to the solicitors to sign our mortgage offer today. So I don't mind now when they call in the 9 day notice of completion - but would prefer it be before the 25th - rent day, so I can hand in my 1 months notice. Was also told that it's an 'all monies' mortgage and that FD need 7 days notice for monies.

My timeline is here.

mrsm

Great News Lostsocks. Bet you can't wait now:j

Update from me, following Inmydreams post I spent half the weekend worrying about the valuation (even tho we have a very low LTV) so I've just called. Valuation has come back the same as my figure FD should get the Offer Doc tom. and the Legal pack should be here in about a week.

BTW those who've had their valuations done by FD, when was the payment taken? Mine was done 11th and nothing has been taken from my card yet.

mrsm

Great News Lostsocks. Bet you can't wait now:j

Update from me, following Inmydreams post I spent half the weekend worrying about the valuation (even tho we have a very low LTV) so I've just called. Valuation has come back the same as my figure FD should get the Offer Doc tom. and the Legal pack should be here in about a week.

BTW those who've had their valuations done by FD, when was the payment taken? Mine was done 11th and nothing has been taken from my card yet.

Have updated my Timeline

allan673

mrsm wrote: »

Great News Lostsocks. Bet you can't wait now:j

Update from me, following Inmydreams post I spent half the weekend worrying about the valuation (even tho we have a very low LTV) so I've just called. Valuation has come back the same as my figure FD should get the Offer Doc tom. and the Legal pack should be here in about a week.

BTW those who've had their valuations done by FD, when was the payment taken? Mine was done 11th and nothing has been taken from my card yet.

Have updated my Timeline

hi mrsm, my valuation was done 2 weeks ago and the £99 charge still hasnt been taken from my credit card either. i check the balance everyday. im expecting the legal pack this week, im going to phone for an update on wednesday.

dweeby

LostSocks wrote: »

I've just been to the solicitors to sign our mortgage offer today. So I don't mind now when they call in the 9 day notice of completion - but would prefer it be before the 25th - rent day, so I can hand in my 1 months notice. Was also told that it's an 'all monies' mortgage and that FD need 7 days notice for monies.

Glad things are progressing for you. As we're buying a house (not re-mortgaging) I'm also interested in the time taken to release funds. My solicitor believes he can get the money in a day or 2, although I might have to pay ~£30 for a CHAPS transfer - but then I don't believe he's particularly familliar with FD. What's an "all monies" mortgage anyway??

One of our sellers have been taken seriously ill, and is having an operation later this week (when we were supposed to excahge). I've told them "don't give us a second thought", but... why can't things just go smoothly? it might sound selfish - but why us!

PS. Everyone taking out an offset mortgage needs to be aware of this, regarding linked savings.