is it usual for motgage companies to withhold money before completion?

kai666

had survey done around christmas on a possible house purchase. The mortgage wanted to withhold £5000 until certain work was done. In the end we pulled out due to the nature of the work involved.

Now waiting to hear about a second mortgage application, and although I don't know the details, they have done the same, withheld £5000.

On the first time we were told this was unusual, so as it has now happened twice, how unusual is it?

Or is it a new credit crunch thing

I guess we will wait on the details, but to happen twice if it is unusual does seem unlucky!

Wickedkitten

What were they holding it back for?

domcastro

No this is usual. My friend had a 17k hold back. The banks are just making sure the house is worth the their money.

Usually it's things like damp, structural damage, woodworm etc The things that could get worse and devalue the house over your mortgage period (and be big insurance jobs) -

Have you been back to the seller and renegotiated?

All mortgage companies will be the same

Robert_Sterling_3

A very normal practice.

kai666

domcastro wrote: »

Have you been back to the seller and renegotiated?

when we see the survey in detail to see the problems I'm sure we will!

alm721

My sister had 10k held back for a job which cost a few hundred to resolve. She got quotes for the work went back to the mortgage company with them and they released the rest of the money. Might this be possible? Sometimes they seem to err on the side of caution and hold back far more than necessary.

Richard_Webster

It was pretty standard say 15 years ago - but as lenders became more and more anxious to lend they made a practice of largely ignoring surveyor's recommendations. Now, ayt last, they are being more careful again.