Valuation fees

wildt

We put a full application in for a mortgage last Thursday, and yesterday the fees for the valuation were taken from our bank. Does this mean they are happy with the application and the valuation will be arranged today, or do they take the fees for every application, and then refund them if you are unsuccessful?

I'm hoping it's the first of the two:o

Thanks

merlinthehappypig

It usually means that the application is o.k. in principle and that they are going ahead with the valuation to see if the house offers adequate security for the mortgage. It doesn't necessarily mean that you will get the mortgage, though.

darkcloudi

You won't get a refund for the valuation, regardless of the decision.

The house may be worth less then what you had offered therefore the mortgage amount the bank will offer will then be less. The valuation survey is looking at security for the amount you are lending.

AndrewSmith

Depends on the lender and your application. Generally fees are not refundable in full, even if the application is un-sucessful. It will be detailed in the declarations page of the application form.This is why it is generally considered better ask for any application/arrangement fees to be added to the loan when you apply, leaving the only upfront payable fee the valuation. Once the mortgage completes you can then elect to repay these arrangement fees in a lump sum thus not effectively adding it to the mortgage, plus protecting your interests should the loan be declined or not go ahead.