Lender refuses to approve mortgage can we appeal the decision? what the process?

wdbamber

Hi All,

I am trying to purchase a house which has had a problem woith ist drains and some slight movements, structural enginners reports (2) have siad that there is unlikely any potentila for future movement.

These reports and further information has been sent to the lender as requested as well as several insurnace companies.

We have managed to get at least 3 really good house and contents insurnace quotes despite the structural issues.

But have learnt today that the Mortgage lender has refused to give us the mortgage out right, despite originally agreeing in principle, they haven't even offered a reduced amount to lend (say amount to covber any potentila underpinning should this be required , estimated at 6m length say £4,000) they have just refused out right.

is there an appeals process?,

can we start over with another lender?

we are worried that now the house has been repaired and redecorated by the current owners insurance claim, we risk that the owner will re-market the house and aim for a higher price.

Originally the " in need or modernsation" tag was to our advantage in our offer now with the repairs there is less to modernise!

Please help

TB:eek:

hcb42

I dont know if I would be appealing, have the lenders seen these reports?

If they think it is unmortgageable, it might be a headache you dont want either...

poppysarah

What about another house?

InkZ

Yeah, have you considered what it will be like when you want to sell it?

ruggedtoast

wdbamber wrote: »

Hi All,

I am trying to purchase a house which has had a problem woith ist drains and some slight movements, structural enginners reports (2) have siad that there is unlikely any potentila for future movement.

These reports and further information has been sent to the lender as requested as well as several insurnace companies.

We have managed to get at least 3 really good house and contents insurnace quotes despite the structural issues.

But have learnt today that the Mortgage lender has refused to give us the mortgage out right, despite originally agreeing in principle, they haven't even offered a reduced amount to lend (say amount to covber any potentila underpinning should this be required , estimated at 6m length say £4,000) they have just refused out right.

is there an appeals process?,

can we start over with another lender?

we are worried that now the house has been repaired and redecorated by the current owners insurance claim, we risk that the owner will re-market the house and aim for a higher price.

Originally the " in need or modernsation" tag was to our advantage in our offer now with the repairs there is less to modernise!

Please help

TB:eek:

I would run a mile. Then another mile. And then another fifty seven miles to be on the safe side. And then, about to collapse with exhaustion and barely able to breathe, I would run another mile.

However, I am a spineless coward.

If you still want the place and you think the first one got it completely wrong then you could try with another lender. I would certainly be using this to bargain hard for a discount.

In the future when you come to sell, if this happens to your buyers you may have real problems selling.

pararct

They underpinning has frightened them off. They consider the property now not to be worth the sum they were lending against it give or take their value ratio.

There is no appeal process, you can try another lender but it is very possible you will run into the same brick wall. Any other purchaser is going to have the same problems unless they can satisfy the lenders loan to value figure.

wdbamber

Thanks Guys,

Underpinning is not required, and the reports says so, but no structural enginneer is going to risk their own liability by saying 100% no more movement.
Being a civil engineer myslef.
The reports say its an isolated case due to drains, which is now repaired.

If you saw the house you would not run a mile! sounds 100 times worse than it acturally is wehn you know enough about it !

The insurance companys have had exactly the same info including reports from structural engineer and are happy to cover.

We are putting up a 25% deposit so most risk on us.

So puzzled that the mortgage company went for a straight No, and not a reduced amount to lend us, linked to cost of any potential underpinning estimated at £4000, although extremely unlikely! as the rpeort say!

Are we the victim of stricter lending after the credit crunch?

Thanks

TB:(

jjlandlord

wdbamber wrote: »

We are putting up a 25% deposit so most risk on us.

Not really. If you are putting down 25% it means the lender is putting down the remaining 75%, doesn't it?

Doozergirl

Try another lender?

wdbamber

I'm sure that the lender has more than the 75% remaining in his / her bank account! We don't have much more than the 25%-30% we are putting up!!

wdbamber

jjlandlord wrote: »

Not really. If you are putting down 25% it means the lender is putting down the remaining 75%, doesn't it?

The house has been repired and no other hosue in the street has shown any of the same issues therefore shows as a isolated case.

What i am quering is why a straight no and not a reduced mortgage loan value to take some of the risk away from the lender! !

any helpful advise would be useful Thanks.
again guys

TrB