Help! Don't know what to do!

Quirky6000

We're in the process of buying a new home from Bellway, we agreed on a price of £180k but have just heard back from Northern Rock for a our mortgage valuation, they only value the house at £170k.
I have been on the phone to Bellway to try and renegotiate the price but they won't budge, insisting Northern Rock are being over cautious. The are now suggesting we use thier mortgage brokers and also mentioned they didn't want us to try and find another mortgage ourselves, but surely this is our choice??

At the minute we're waiting for a phone call from what is basically a Bellway mortgage broker but we're unsure what to do next?

poppysarah

Pay more than the value ... they're being only slightly cautious though. Could have been a lot worse.

Do you have 10k floating round spare? Then you probably can't buy the house unless bellway can "find" you a mortgage for the full amount.

However - tell them you'll only pay 170 and walk away if they don't.

It's only a newbuild. Not like there won't be more of them along anytime soon.

Some near me been built two years now I think and only sold 1/5.

Quirky6000

But surely there's nothing stopping us looking for a different mortgage ourselves?

poppysarah

No there's not.
But the valuers use the same criteria.

A new build loses values instantly you move in. If the housing market drops at all your deposit is all swallowed up and you get into negative equity.

As the taxpayers still own northern rock (and 40% of lloyds and god knows what other banks) I'd rather they were ultra cautious about lending ....

You want to buy a shiny new build - the risk should be on your financial shoulders --- not the taxpayers.

Milliewilly

No but the Valuation surveyor may come up with £170 again from a different provider then you have paid out more arrangement fees? Often the valuations are contracted out so it could even be the same surveyor / firm of surveyors that value again and they will use the same method.

Milliewilly

poppysarah wrote: »

No there's not.
But the valuers use the same criteria.

A new build loses values instantly you move in. If the housing market drops at all your deposit is all swallowed up and you get into negative equity.

As the taxpayers still own northern rock (and 40% of lloyds and god knows what other banks) I'd rather they were ultra cautious about lending ....

You want to buy a shiny new build - the risk should be on your financial shoulders --- not the taxpayers.

Unfortunately this is true - the same as buying a brand new car. The developers charge a premium for this but its only ever 'new' once so the lender will be cautious. I personally would tell the developer you aren't budging and look for somewhere else. Its a new financial year and £10K is peanuts to Bellway to get a house sold.


Sorry forgot to add - DON'T use Bellway's mortgage broker - they will value at what Bellway want rather than a true value this is why they don't want you to try another lender yourself. If they were confident NR have undervalued then they would be happy for you to use any other High Street lender. There is a conflict of interest here be careful.

Mum_of_3_3

I would tell them you'll pay £170k and no more, I'm not sure where you are buying, but I live in the South-West and the development they built about 2 years ago still has loads of unsold properties, so I can't imagine Bellway are in that great a place that they can afford to lose a sale.

Like Millywilly said don't use their mortgage brokers, they will overvalue the property and why should you pay £10k more than it's worth?

M_o_3

Quirky6000

Thing is, this is a part ex, we had ours on the market for a while but we're desperate to move so spoke to the builders. We're already getting a pretty good price for ours which is why they won't budge on price. If we lose this one we'll be back to square one and just can't face that.

Milliewilly

Quirky6000 wrote: »

Thing is, this is a part ex, we had ours on the market for a while but we're desperate to move so spoke to the builders. We're already getting a pretty good price for ours which is why they won't budge on price. If we lose this one we'll be back to square one and just can't face that.

That puts you in a weaker position then - either you have to make up the difference or try and sell yours in the meantime and renegotiate - at least you know what the new build is 'worth' to the bank.

Quirky6000

Just been looking on right move and very similar properties on the same estate that are second hand are listed for anything between 180k and 190k?????

mufi

Are they listed as sold for between 180 and 190, or are those asking prices?

If they are asking prices then they mean nothing, and you need actual sold prices, if there are any - these are likely to be in the region of 90% of the 180 - 190K asking price.