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Mortgage problems.
- Thread starter RobT
- Start date
Nemesis
Member
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- 9,402
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- Planet Earth
Well as you know we have had many posts on this - what problems are you having?
Or is this in general?
I think the main probs seem to be the ones regarding silly requirements re injected dmp proofing and the like.
Or is this in general?
I think the main probs seem to be the ones regarding silly requirements re injected dmp proofing and the like.
dragonfly
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- Messages
- 55
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- cambridgeshire
Nationwide put an £1100 retention on our mortgage following the valuation survey and structural engineers report. £400 against getting 1 purlin strengthened and the rest against woodworm treatment. At the start of the process we had been given a full retention based on the valuation survey. Having gone through the experience, it's crucial to get an independent building survey from someone experienced witrh listed/period properties as the info contained in it can be sent to the valuation surveryor who may not have the expertise to correctly assess a period property. Also allow longer for searches etc. We allowed 8 weeks (cos our solicitor told us that was a reasonable timeframe) and it took over 3 months.
DaveBrigg
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- 908
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- North Lincs
I agree with Dragonfly. The people who say yea or nay to mortgage applications are accountants, and in our experience have surprisingly little knowledge of the actual buildings. Fortunately they tend to listen to advice.
If the advice from the initial, non-specialist survey seems to be poor, find an expert on old buildings and send their report, with an explanation as to why it is more suitable. A few phone calls and 800 quid later and we were able to get the mortgage approved with the requirements for unnecessary work taken out. They even dropped the retention when I argued that a retention against getting the roof repaired could mean that we wouldn't be able to pay the roofers to do the work. Unless a company has a policy never to lend on certain types of property you just need to reassure them that their money is safe. Of course, if they got a surveyor with the relevant experience involved in the first place, none of this would be necessary.
If the advice from the initial, non-specialist survey seems to be poor, find an expert on old buildings and send their report, with an explanation as to why it is more suitable. A few phone calls and 800 quid later and we were able to get the mortgage approved with the requirements for unnecessary work taken out. They even dropped the retention when I argued that a retention against getting the roof repaired could mean that we wouldn't be able to pay the roofers to do the work. Unless a company has a policy never to lend on certain types of property you just need to reassure them that their money is safe. Of course, if they got a surveyor with the relevant experience involved in the first place, none of this would be necessary.
We didn't actually have any difficulty getting the money that we needed to purchase our listed property, which was in a dreadful state of repair. However the specialist surveys (re structural problems) had already helpfully been done and included with the estate agents details - even if the estimates to remedy problem were astronomical!!!
However I suppose much depends on what percentage of the valuation on the property you wish to borrow! As long as lenders know their money is safe - that's what they really care about, and I think our site alone was probably worth more than we wanted to borrow, which no doubt helped.
Our main difficulty was getting someone to insure the proerty given its age (1770) and the fact that it was listed. That was even before it had been declared that the property also had a major structural problem. Standard life bank happily gave us a mortage to buy the place - but they certainly wouldn't insure it!
With our previous house we had money retained by the building society until certain works were undertaken. However I went back to them part way through and asked for some of the money to be released as part of the specified works had been completed. Happily they coughed up - which helped enormously with cash-flow! Moral of story -"if you don't ask - you dont get". It pays to be a bit cheeky (but polite with it)!!
However I suppose much depends on what percentage of the valuation on the property you wish to borrow! As long as lenders know their money is safe - that's what they really care about, and I think our site alone was probably worth more than we wanted to borrow, which no doubt helped.
Our main difficulty was getting someone to insure the proerty given its age (1770) and the fact that it was listed. That was even before it had been declared that the property also had a major structural problem. Standard life bank happily gave us a mortage to buy the place - but they certainly wouldn't insure it!
With our previous house we had money retained by the building society until certain works were undertaken. However I went back to them part way through and asked for some of the money to be released as part of the specified works had been completed. Happily they coughed up - which helped enormously with cash-flow! Moral of story -"if you don't ask - you dont get". It pays to be a bit cheeky (but polite with it)!!
ian
Member
- Messages
- 73
- Location
- North Essex
Economics seem to be the main driving force for whether to approve a loan. Comforting to think they may at least be able to remain solvent. Our high street provider had no problems advancing all that we requested on a listed building with some quite shabby previous repairs and defects. Mind you their surveyor was not able to correctly identify the lack of cold water tanks or that one half was supplied by a combi boiler and the other by a conventional boiler. If he had more knowledge, he would have had a fit at the state of some of the property just under the surface, the lack of walls between plaster board and external cladding for example.
clematis
Member
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- 6
- Location
- Beautiful Essex
We have recently had our mortgage offer on a 700 year old thatched property agreed with no stipulations at all. Before it was surveyed I rang the building society and asked which surveyors they would use. I then ramg them and asked to speak to the surveyor who had been allocated our survey. After asking lots of relevent questions - are you a Chartered Building Surveyor (no), what experience do you have with period properties (hardly any), do you belong to any relevent organisations (no) I asked for the surveyor to be changed. In fact, he had already requested to be moved off this case as he was not confident after speaking to me! They then changed surveyor companies and I went through the same 'interview' process and got a great surveyor, very experienced who in his detailed report did point out some issues but always with the caveat of 'to be expected in a property of this age and style' and didn't make any a major issue. As such the mortgage went very smoothly. You are paying for the survey so make sure your money is spent wisely!!!
We had our mtge approved with no questions on a large property with a number of items that could be argued as 'needing work'. Mtge came from Natwest, who seemed totally relaxed with age/size/cost of property.
Some thoughts:
1. Only request the valuation from the lender. This will be so superficial, it couldn't possibly generate enough detail for retention.
2. If you want a full survey (we didn't), commission this yourself privately...without the lender involved. You have full control over the choice of surveyor and you have no requirement to disclose to the lender
3. The point raised by others on LTV is paramount. Lenders get worried when the LTV is high and they anticipate problems shifting the property if you default. Whereas if your LTV is 50%, they know that they could sell the property at a significant discount and still recover
In my experience, the unusual properties are best handled by the less 'commercial' lenders. You will typically find smaller BS, specialist lenders or 'merchant' banks more readily able to customise their 'rpoduct' for you. The high street lenders rely upon scale...churning through mtge after mtge.....not a business model that works well with individual properties
Some thoughts:
1. Only request the valuation from the lender. This will be so superficial, it couldn't possibly generate enough detail for retention.
2. If you want a full survey (we didn't), commission this yourself privately...without the lender involved. You have full control over the choice of surveyor and you have no requirement to disclose to the lender
3. The point raised by others on LTV is paramount. Lenders get worried when the LTV is high and they anticipate problems shifting the property if you default. Whereas if your LTV is 50%, they know that they could sell the property at a significant discount and still recover
In my experience, the unusual properties are best handled by the less 'commercial' lenders. You will typically find smaller BS, specialist lenders or 'merchant' banks more readily able to customise their 'rpoduct' for you. The high street lenders rely upon scale...churning through mtge after mtge.....not a business model that works well with individual properties
We hit an interesting one whilst looking for a mortgage for a 15C timber frame house requiring complete renovation. The Coventry BS will not lend on timber frame houses unless it is 'modern'. However, when we pointed out that the property had been there since the 14C they withdrew this requirement.
The answer appears to be to talk to them.
The answer appears to be to talk to them.
Nemesis
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- Planet Earth
We found the Coventry BS to be very sensible and accommodating. We have just paid off our mortgage (HOORAY!!) but of all the companies we have dealt with over the years we found the Coventry to be NOT about ripping people off.
However, experience has taught me that the main problem is a poor survey (often the valuation survey) with requirement to seek a further 'damp and timber' survey. That is carried out by a timber and damp treatment firm, and then comes the report which says do damaging work, which the mortgage company insists on, and a retention.
This can be got round, but it may mean a survey of your own and delays. In the short term this means laying out cash upfront for a specialist in period buildings, but longer term this could save a great deal in treatments which are not necessary and indeed damaging.
The difficulty is finding a genuine specialist - many say they deal in period property, but actually have no idea apart from spray, chemical injection, etc.
I have also a sneaking suspicion that HIPS packs may add to the problems - recommendations re energy surveys (and see EH advice as I posted on the HIPS sticky) could well become requirements by mortgage companies, and be used as a lever to drop prices by would be purchasers.
I have a friend who recently moved to a period property. Her problems centred around an ancient settlemeant crack, which the surveyor woudn't commit to - in the end she had to pay for a specialist report from an engineer, who confirmed it ancient.
I know the Ecology will lend, and indeed sponsored this year's SAVE Buildings at Risk catalogue, and wrote an article for it, and so will Norwich and Peterborough, but these possibly don't always give the best deals and lowest rates which the major companies can do. However, always read the small print in the major company deals.
However, experience has taught me that the main problem is a poor survey (often the valuation survey) with requirement to seek a further 'damp and timber' survey. That is carried out by a timber and damp treatment firm, and then comes the report which says do damaging work, which the mortgage company insists on, and a retention.
This can be got round, but it may mean a survey of your own and delays. In the short term this means laying out cash upfront for a specialist in period buildings, but longer term this could save a great deal in treatments which are not necessary and indeed damaging.
The difficulty is finding a genuine specialist - many say they deal in period property, but actually have no idea apart from spray, chemical injection, etc.
I have also a sneaking suspicion that HIPS packs may add to the problems - recommendations re energy surveys (and see EH advice as I posted on the HIPS sticky) could well become requirements by mortgage companies, and be used as a lever to drop prices by would be purchasers.
I have a friend who recently moved to a period property. Her problems centred around an ancient settlemeant crack, which the surveyor woudn't commit to - in the end she had to pay for a specialist report from an engineer, who confirmed it ancient.
I know the Ecology will lend, and indeed sponsored this year's SAVE Buildings at Risk catalogue, and wrote an article for it, and so will Norwich and Peterborough, but these possibly don't always give the best deals and lowest rates which the major companies can do. However, always read the small print in the major company deals.