Mortgage declined

jesmin45

ive been accepted on a buy to let remortgage, valuation came back and stated demand and future salability - poor, so they have now declined this. I accept that when the valuer came round it was in a poor condition ie decorative wise and full of junk and dirty. I have explained this was because the property has been empty 3 yrs and |I have now had it emptied professionally cleaned and decorated throughout. I only want to borrow £40k - the prop is valued at £150k. I realise with hindsight that I should of waited until the prop was cleaned before allowing the valuer in! the property is in a popular spot and really is a nice house. there was no evidence of subsidence it was just that the val had ticked the 'poor box', although he did state that it was average for letting purposes. The survey ended with 'Due to economic climate prevailing, demand classified as 'poor' is not a reflection of the individual property or its environs', not sure what they mean by that. I have asked if they would reinspect the property but they say because it has been keyed onto the system they cannot re value. Any help or advice would be gratfully appreciated.

herbiesjp

At a mortgage of only £40k on a property value of £150k - you should be fine looking at a different lender, on a deal that could offer a free valuation, so nothing to lose

What rental income did they put down that you could expect?
What type of property is it? i.e. an ex-local authority high rise block or semi, or maisonette etc?

Toughluck

Obviously don't try that lender again. You just need to go to another lender. Get a free val lender if your credit is clean enough. Based on the loan size the difference in rates isn't going to make it unaffordable and also you have cleaned up now so there is no reason the val will be negative.

maninthestreet

6% interest on £40K is only £2400 per year, or £200 per month. Surely you would find some one to rent it for, say, £300 per month? What type of property is it?

jesmin45

thanks all, its a stone semi (not ex local) estimated rental val on survey was £450pm but estate agent said between £550-£600. I have a jointed mortgage on my residentail prop with partner, and when the DIP came back it was classed as excellent credit history and they fast tracked it. The buy to let is in my name only and they brought up an old ccj of £150 from about 7 yrs ago, which 7 yrs ago I didnt no I had one, it has been settled. I also have an agreement with a personal loan co. and am paying a reduced amount each month, but once i remort i will pay it off, so i suppose this will go against me.

herbiesjp

Property and rental income are fine

The CCJ should be fine as well

The agreement with the loan company may cause problems, but this lender declined based on the valuation and not on your credit history.

I'd suggest having a word with a whole of market mortgage adviser, and they should be able to find something very quickly for you

koexelek

herbiesjp wrote: »

, but this lender declined based on the valuation and not on your credit history.

If you try to replace the mortgage elsewhere, you might run the risk of getting the same surveyor again, as a lot of lenders use the same surveyors.

Might be worth speaking to the potential new lender to make sure the person who did the survey is NOT on their panel

herbiesjp

koexelek wrote: »

If you try to replace the mortgage elsewhere, you might run the risk of getting the same surveyor again, as a lot of lenders use the same surveyors.

Might be worth speaking to the potential new lender to make sure the person who did the survey is NOT on their panel

I know - but that is why I suggested going the broker route. As the broker would be able to work this out very quickly

jesmin45

As i have the valuers details would it be possible for me to contact him and explain the situation?

herbiesjp

Who is the lender?

Personally I'd try with a different lender/surveyor, as at that level you should find a deal to suit

jesmin45

Platform mortgages.