Nationwide......

Incisor

Jedlova wrote: »

Has anyone heard of this????????
We are buying a new house and so it has to be surveyed from plan.
We have arranged our mortgage with the Nationwide.
The surveyor called us yesterday to say that he agrees the house is valued at the price the builders have asked for, but he has been told by Nationwide, to treat it as if we are selling the house and value it at a whopping 10% under the price.
We are putting down a hefty deposit.
Is it legal, what the Nationwide are doing??????? (you can't be too careful with banks etc. these days!!!!!!!)

No, it is totally illegal, irrational and immoral. They should offer you at least 125% of its value without question on an income multiplier of at least 5.75 after including your partners pay, all overtime and commission plus your kids pocket money [tip, increase their pocket money to £5000/yr - it nets you about another £30,000].

Of course, you are doing this all wrong, so you have little ground to complain. You should not have a hefty deposit, you need some good holidays and downpayments on chelsea tractors for yourself and your partner.

Oops, it is no longer 2007

Feels as if we are in negative equity before we start.
Instead of a brand new house, it feels as if we're buying second hand!
HELP

You are in negative equity as soon as you start. You may buy new, but you can only ever sell 2nd hand.

brit1234

The simple fact is Banks and building societies don't trust newbuilds anymore due to years of scams involving gift deposits. These scams put all the risk on the lenders and none on the borrowers, technically 100% mortgages. It also massively inflated land registry figures adding to the housing bubble.

Premier_2

I hate to repeat this cliche, but a the value of a property is only that which someone else is willing to pay for it.

In this case, if the surveyor is saying the value of the property if you were to sell it today is only 90% of what you are paying, then you are paying more than it's value.

Having said that, if you really like the property, who cares what anyone else thinks its worth? If you are putting down a hefty deposit, then it shouldn't affect the lender's decision to lend you the money requested.

Richard_Webster

Nationwide are doing what they and other major lenders should have done years ago - told the builders to stop over egging their prices. If all the lenders had stuck together and refused to accept builders' invented prices a lot of people wouldn't be in the mess they are in now.

From OP's point of view it is easy - he just tells builder that it has been down valued and builder better accept that and reduce his price accordingly. However I would be very wary about buying any new property, and certainly any that hasn't been substantially completed. There must be other new houses nearby that are completed.

Jedlova

Thanks for all your replies.
We are using the profit from selling our flat to use against buying our new house.
This is so we don't need a 100% mortgage and also so we only have a mortgage over 10 years.
We don't intend to sell our house the next day and plan to make it our home for many years.
In the grand scheme of things, it doesn't matter what the Natiowide has done.
It is just annoying that the surveyor has valued the house at the asking priceand as he told us, if it had been another bank or building society, this would have been the price, instead of the 10% reduction by the Nationwide.
In an ideal world the surveyor should be able to say, this is what it's worth and not what the lender dictates.

Running_Horse

Jedlova wrote: »

In an ideal world the surveyor should be able to say, this is what it's worth and not what the lender dictates.

But it's not the surveyor's money at risk, it's the Nationwide's money.

sarkin

Jedlova wrote: »

Thanks for all your replies.
We are using the profit from selling our flat to use against buying our new house.
This is so we don't need a 100% mortgage and also so we only have a mortgage over 10 years.
We don't intend to sell our house the next day and plan to make it our home for many years.
In the grand scheme of things, it doesn't matter what the Natiowide has done.
It is just annoying that the surveyor has valued the house at the asking priceand as he told us, if it had been another bank or building society, this would have been the price, instead of the 10% reduction by the Nationwide.
In an ideal world the surveyor should be able to say, this is what it's worth and not what the lender dictates.

Ok
Nationwide will not lend the money because of there criteria.
Now after reading everyones replys saying newbuild is a no go, you still want to buy. May I suggest you contact a whole of market mortgage broker (obviously not me as I am rude) who will find you a lender that does except newbuild propertys and you can buy the house that everyone has told you is a donkey.


This is a money saving forum and newbuilds are notorious for loosing money. Now as you say you will be in the property for a long time so if it loses value you dont care. Well I would because in the future you will want to renew your mortgage deal but without the equity you will not be able to access the best rates which will lose you even more money. :money:

GracieP

Jedlova wrote: »

In the grand scheme of things, it doesn't matter what the Natiowide has done.
It is just annoying that the surveyor has valued the house at the asking priceand as he told us, if it had been another bank or building society, this would have been the price, instead of the 10% reduction by the Nationwide.
In an ideal world the surveyor should be able to say, this is what it's worth and not what the lender dictates.

Well it's the lender who is paying for the house initially so it really is up to them to decide it's value. They are doing you a favour here. You are now in a strong position to tell the builder that your mortgage provider has down valued the house and that you will need to re-negotiate the price.

You might be happy to live in this house for the rest of your life, but wouldn't you be happier with £5-20k less of a mortgage?

Incisor

Jedlova wrote: »

... In an ideal world the surveyor should be able to say, this is what it's worth and not what the lender dictates.

That ideal world started vanishing in mid 2007. It was that ideal world which ended in the mess we are now in. Now we have the logical consequence of your ideal world. It is not consistent to want a given ideal world and not accept the consequences!

terrierlady

Nothing is hidden from the valuer now adays the new build office has to supply a cml form which lists all incentives given even the part exchange price given if thats part of the deal plus did we bump that price up to secure a deal.