Mortgages: 3) Help from the professionals

It is very obvious that applying for a mortgage is not a simple task. It is the biggest investment that most of us will make throughout our lives, and one that makes us very vulnerable and nervous.

This is why we need the help of professionals along the way, but also why we need to spend more money on fees to get us there. For many of us, our mortgage will be a commitment, which will be with us for a large part of our lives, and it is important to be well-advised, both financially and legally, in respect of this.

One of the key players in relation to the purchase of you property and the drawdown of your mortgage cheque will be your solicitor. He/she will be contacting vendors' solicitors in relation to contracts for closing the sale, and he/she will also be involved in chasing up your lender to ensure that your cheque is issued promptly in order to close the sale. He/she is also obliged to ensure that the title in relation to the property you are about to purchase is in order, and that all legal aspects regarding that title are above-board. Of course, this service does not come cheap. The Law Society's recommended fee is in the region of 1% of the purchase price of your property, excluding VAT. As with anything else, it is a good idea to shop around in relation to this service. Ensure that you get a written quote from your solicitor in relation to professional fees and outlay that he/she may charge.

There are other associated costs to a mortgage, which you may not notice at the beginning of your application. Your lender will require that a qualified valuer from their approved panel visits the property to be used as security, in order to carry out a valuation for mortgage purposes. This will cost from €127 upwards, depending on the area in which your property is situated, the amount of miles to and from the property or indeed whether or not you also require a survey to be carried out on the property. In some cases, Lenders will refund this fee. Establish whether or not your fee will be refundable prior to instructing the valuation on your property. Either way, it is a necessary expense both from your point of view and that of the lender, as you need to have a professional opinion that it is sound structurally. If a lender's valuer sees any problems in relation to the structure of the property, he/she will highlight these in his/her valuation report and, in some cases, may recommend that a survey is carried out.

Unfortunately, people building their own homes will be subject to a further set of professional fees in the form of architect's fees. An architect is required in this type of project to ensure that all works are carried out in accordance with planning permission and building regulations. A lender will also require confirmation of these items from a qualified architect. It is important to check the credentials of your architect before you instruct him/her to act on your behalf, to save possible problems down the road.

Nowadays, most architects will have professional indemnity insurance, and there is no harm in finding out about this sooner rather than later. If your architect does not have professional indemnity insurance, but has been in practise for over ten years, a lender will more than likely accept their undertaking, when looked at on a case-by-case basis.

Sadly, there is nothing that we can do in relation to these charges. We can, however, ensure that we are getting what we pay for. Remember that you are employing someone to carry out a professional service on your behalf. Do not be afraid to ask questions and keep them under pressure to have their side of things up-to-date, to keep the ball rolling regarding the drawdown of your mortgage cheque. Never be afraid that what you are about to ask might sound silly. These people have spent years in college studying their respective fields. They are the experts and will have valuable advice. Keep in mind that cheapest is not always best a good service is more important than a cheap one. Shop around, and be sure that you get what you pay for.