Mortgage valuation question?
Discussion
Hi Folks
Any mortgage experts out there?
Just in the process of buying a new house. Our loan to purchase price is 45% due to us having a hefty deposit from the sale of our current house.
Nationwide who our current mortgage is with and who had approved our new mortgage have come back today saying they may not be able to lend us the money as due to valuing the property below what we've offered. We're paying less than the original home report value but they are saying due to the renovation work required on the property they may not be able to give us the mortgage? Surely a home report value reflects this?
They've come to this conclusion without even viewing the property themselves! They've only gone on the home report info which they've had right since the start of this process & right through the agreement in principle & the formal acceptance. They are sending someone out on Thursday to survey the property (which they decided not to do 2 weeks ago as they'd already decided from the home report it was too risky but failed to get in touch with us till today) so we'll no more after that.
I get this would be a problem if you were mortgaging right to the limit and a house valuation was lower but we have over £200k of equity going into the purchase and there's no way the house is going to be devalued by anything like that.
Why would they be doing this? We're also long term Nationwide customers for 30+ years with mortgages, credit cards, loan history with them + a perfect credit rating and well within the affordability for the mortgage.
To say we're pissed off when we should be finalising in 9 days in an understatement!
Any thoughts or advice?
Cheers
James
Any mortgage experts out there?
Just in the process of buying a new house. Our loan to purchase price is 45% due to us having a hefty deposit from the sale of our current house.
Nationwide who our current mortgage is with and who had approved our new mortgage have come back today saying they may not be able to lend us the money as due to valuing the property below what we've offered. We're paying less than the original home report value but they are saying due to the renovation work required on the property they may not be able to give us the mortgage? Surely a home report value reflects this?
They've come to this conclusion without even viewing the property themselves! They've only gone on the home report info which they've had right since the start of this process & right through the agreement in principle & the formal acceptance. They are sending someone out on Thursday to survey the property (which they decided not to do 2 weeks ago as they'd already decided from the home report it was too risky but failed to get in touch with us till today) so we'll no more after that.
I get this would be a problem if you were mortgaging right to the limit and a house valuation was lower but we have over £200k of equity going into the purchase and there's no way the house is going to be devalued by anything like that.
Why would they be doing this? We're also long term Nationwide customers for 30+ years with mortgages, credit cards, loan history with them + a perfect credit rating and well within the affordability for the mortgage.
To say we're pissed off when we should be finalising in 9 days in an understatement!
Any thoughts or advice?
Cheers
James
Jammez said:
Hi Folks
Any mortgage experts out there?
Just in the process of buying a new house. Our loan to purchase price is 45% due to us having a hefty deposit from the sale of our current house.
Nationwide who our current mortgage is with and who had approved our new mortgage have come back today saying they may not be able to lend us the money as due to valuing the property below what we've offered. We're paying less than the original home report value but they are saying due to the renovation work required on the property they may not be able to give us the mortgage? Surely a home report value reflects this?
They've come to this conclusion without even viewing the property themselves! They've only gone on the home report info which they've had right since the start of this process & right through the agreement in principle & the formal acceptance. They are sending someone out on Thursday to survey the property (which they decided not to do 2 weeks ago as they'd already decided from the home report it was too risky but failed to get in touch with us till today) so we'll no more after that.
I get this would be a problem if you were mortgaging right to the limit and a house valuation was lower but we have over £200k of equity going into the purchase and there's no way the house is going to be devalued by anything like that.
Why would they be doing this? We're also long term Nationwide customers for 30+ years with mortgages, credit cards, loan history with them + a perfect credit rating and well within the affordability for the mortgage.
To say we're pissed off when we should be finalising in 9 days in an understatement!
Any thoughts or advice?
Cheers
James
Just the downval would not in itself preclude them from lending on that LTV. Any mortgage experts out there?
Just in the process of buying a new house. Our loan to purchase price is 45% due to us having a hefty deposit from the sale of our current house.
Nationwide who our current mortgage is with and who had approved our new mortgage have come back today saying they may not be able to lend us the money as due to valuing the property below what we've offered. We're paying less than the original home report value but they are saying due to the renovation work required on the property they may not be able to give us the mortgage? Surely a home report value reflects this?
They've come to this conclusion without even viewing the property themselves! They've only gone on the home report info which they've had right since the start of this process & right through the agreement in principle & the formal acceptance. They are sending someone out on Thursday to survey the property (which they decided not to do 2 weeks ago as they'd already decided from the home report it was too risky but failed to get in touch with us till today) so we'll no more after that.
I get this would be a problem if you were mortgaging right to the limit and a house valuation was lower but we have over £200k of equity going into the purchase and there's no way the house is going to be devalued by anything like that.
Why would they be doing this? We're also long term Nationwide customers for 30+ years with mortgages, credit cards, loan history with them + a perfect credit rating and well within the affordability for the mortgage.
To say we're pissed off when we should be finalising in 9 days in an understatement!
Any thoughts or advice?
Cheers
James
Without knowing all the ins and outs, my guess is that is more the current condition of the property and the amount/type of work required. I appreciate you are putting in plenty of equity, but they don't really look at it like that. There concern is worse case scenario - if it all went tits up before the work was completed and they had to repo, they might be left with a property that was difficult to sell.
Thanks Hyena
The house is moveinable (made up word!) if you had low standards! All the main stuff is sound, roof & walls are all solid, electrics, heating & plumbing are all serviceable but the house hasn't been lived in for about 3/4 years so it's in a state.
There's an old coach house & loads of steading buildings and these are in various states. I get the impression they've focused on the information in the home report that relates to the outbuildings rather than the main house. What's frustrating is they seem to have come to this conclusion without actually visiting the property!
We'll see if anything changes on Thursday when they send the surveyor out. I'm assuming if they due decline there must be companies that specialise in supporting people who buy houses to renovate or self builds
Cheers
James
The house is moveinable (made up word!) if you had low standards! All the main stuff is sound, roof & walls are all solid, electrics, heating & plumbing are all serviceable but the house hasn't been lived in for about 3/4 years so it's in a state.
There's an old coach house & loads of steading buildings and these are in various states. I get the impression they've focused on the information in the home report that relates to the outbuildings rather than the main house. What's frustrating is they seem to have come to this conclusion without actually visiting the property!
We'll see if anything changes on Thursday when they send the surveyor out. I'm assuming if they due decline there must be companies that specialise in supporting people who buy houses to renovate or self builds
Cheers
James
Jammez said:
Thanks Hyena
The house is moveinable (made up word!) if you had low standards! All the main stuff is sound, roof & walls are all solid, electrics, heating & plumbing are all serviceable but the house hasn't been lived in for about 3/4 years so it's in a state.
There's an old coach house & loads of steading buildings and these are in various states. I get the impression they've focused on the information in the home report that relates to the outbuildings rather than the main house. What's frustrating is they seem to have come to this conclusion without actually visiting the property!
We'll see if anything changes on Thursday when they send the surveyor out. I'm assuming if they due decline there must be companies that specialise in supporting people who buy houses to renovate or self builds
Cheers
James
Fingers crossed the survey will change their mind. The property will need to have a serviceable kitchen and bathroom to be considered habitable for mortgage purposes.The house is moveinable (made up word!) if you had low standards! All the main stuff is sound, roof & walls are all solid, electrics, heating & plumbing are all serviceable but the house hasn't been lived in for about 3/4 years so it's in a state.
There's an old coach house & loads of steading buildings and these are in various states. I get the impression they've focused on the information in the home report that relates to the outbuildings rather than the main house. What's frustrating is they seem to have come to this conclusion without actually visiting the property!
We'll see if anything changes on Thursday when they send the surveyor out. I'm assuming if they due decline there must be companies that specialise in supporting people who buy houses to renovate or self builds
Cheers
James
If they still won't touch it, use a broker - they will know the best lenders to use. The worst case scenario is that a lender would release funds in tranches, as the work was completed. From what you say though, I suspect you should not have too much difficulty securing funds from a mainstream lender.
As predicted they came back on Monday saying it doesn't fit their risk profile. I understand the concept but what's most annoying is they've left it to the very last minute to tell us this!
They had the home report, which is a pretty honest description of the place right from the get go 2 months ago and they leave it till 5 days before we close to tell us!
Off to see a broker this afternoon, only looking for £160k on a property that was originally valued at £380k & we're purchasing at £350k so fingers crossed he can sort something for us.
They had the home report, which is a pretty honest description of the place right from the get go 2 months ago and they leave it till 5 days before we close to tell us!
Off to see a broker this afternoon, only looking for £160k on a property that was originally valued at £380k & we're purchasing at £350k so fingers crossed he can sort something for us.
I would go straight on money supermarket and punch in the numbers and go direct.
https://www.moneysupermarket.com/mortgages/
I have just done this and remortgaged with virgin , great service and rates and it was all done and dusted in 14 days and they didnt even come and value the house.
https://www.moneysupermarket.com/mortgages/
I have just done this and remortgaged with virgin , great service and rates and it was all done and dusted in 14 days and they didnt even come and value the house.
interstellar said:
I would go straight on money supermarket and punch in the numbers and go direct.
https://www.moneysupermarket.com/mortgages/
I have just done this and remortgaged with virgin , great service and rates and it was all done and dusted in 14 days and they didnt even come and value the house.
Going direct is the last thing the OP needs to be doing, he needs professional informed advice if you read the thread......good luck OP!https://www.moneysupermarket.com/mortgages/
I have just done this and remortgaged with virgin , great service and rates and it was all done and dusted in 14 days and they didnt even come and value the house.
55palfers said:
Tossers!
How much do you reckon the land alone is worth?
Difficult to say but not a huge amount. Its a rural property so if there were no buildings on it you'd only be looking at around £30k for the land circa 4.5 acres. (there's an adjoining piece of agricultural land which we're not buying that's up for £35k so that's where my estimate comes from) How much do you reckon the land alone is worth?
The farmhouse on it's own in renovated condition would be worth what we're paying for the farmhouse house, coach house, steadings & 4.5 acres.
The opportunities for the steadings & coach house are huge. It has lapsed outline planning to convert into 5 properties, with one of those being a 5 bedroom house.
Long term we will probably look to convert some of the steadings into 3 holiday lets with the rest being garages & workshops for toys!
Jammez said:
It has lapsed outline planning to convert into 5 properties, with one of those being a 5 bedroom house.
Long term we will probably look to convert some of the steadings into 3 holiday lets with the rest being garages & workshops for toys!
^^For me...........there are the reasons for the decline. Any underwriter worth their salt will have searched for any plans submitted for this property.........even lapsed plans can cause declines I've seen in the past......even if the intention isn't to proceed with the plans......Long term we will probably look to convert some of the steadings into 3 holiday lets with the rest being garages & workshops for toys!
Gassing Station | Finance | Top of Page | What's New | My Stuff