Please help if you have applied for a mortgage through Principality

JayneG

Hi
I'm aware some lenders (specifically Nationwide, but possibly others) are valuing new builds on a second hand basis and as a result more often then not they are not valuing up to the offer price (even in cases where the offer price is significantly reduced).

I just wondered, how are Principality on this score? I have a mortgage arranged with RBS and they have valued the new build I'm planning to buy in line with the agreed price (it's been reduced by 20% from last year's price). Principality have better rates though.
What has been your experience of their valuation policy if you have applied?

JayneG

Bump
Oh go on! Someone must be able to answer!! :-)

payless

I'm not aware of any said policy at PBS *( but thats not to say they won't) why don't you ask the 0800 678 1000
--
is it rbs direct or rbs via estate agent/broker ?

Dan_1976

They will do the same and are a prudent lender.

I found the service poor but I have also seem good feedback for them.

Form memory they will not lend on new build flats or its a max 75% LTV. That may just be buy to lets.

Cazza

Yep, they were definitely valuing on a second hand basis this time last year, so I doubt very much that they're changed. Service wise, they're either fantastic or atrocious, never in the middle!

JayneG

Thanks all.

Payless, its RBS via broker.

Dan, it's a detached house, not a flat, and they have confirmed thay will lend at 85% on this.

Thanks again, I'm making the application today, so I guess I'll just have to wait and see.

Anyone else applied with them recently for a mortgage on a new build? Or does anyone know what RBS's policy (who have valued the house ok) is?

mark5

It wasnt a new build but Principality valued my 1st house 10% below what I paid for it back in 2003 when arranging the mortgage, it wasnt a problem due to the size of my deposit but they do tend to be a little cautious.

I've always found Principality very good to deal with both for mortgages and savings accounts at my local branch.

ianbrown

HI,

We are in exactly the same situation as you.

We applied for the 85% LTV 4 year fix at 5.29% - think its been pulled now.

We've bought a new build detached, priced at £175k got for £146500.

Don't worry about the valuation - ours was fine -but even if they under value it you can go back to the devolpers and get more money off.

They were really slow but we thought it was because our advisor was new. Received our offer on monday - just keep on their case,

HTH

JayneG

Thanks Mark, we don't have any funds to put towards the sale if Principality downvalue it, so fingers crossed they don't.

IanBrown, yes the 5.29% rate has been pulled, it's 5.69% now, but still a lot better than any other rate available for new build @ 85% ltv.

We have already exchanged on the basis of a valuation and mortage offer from RBS, so don't have scope to get the developer to reduce the price if it is downvalued this time and would have to fall back on our RBS mortgage offer (less attractive rate).

The house type we are going for was advertised last year at £278k. They have now been reduced to £225k and we have got ours for £211k.
I am happy that the price is fair, just hope the valuer agrees!