Remortgaging whilst undergoing subsidence investigation

ukfriend3680

Hi,

Background:
We bought our house 2 and a half years ago, the current mortgage is due for renewal in July next year. In the last 3-4 months we have noticed internal and external cracking at the front of the house. The house is 8 years old so we have put in a claim with NHBC. We have had two inspections and they have now agreed to open an investigation which will be starting with digging a hole at the front to look at the deep foundation at the side of the house (there is an Oak tree about 15metres to the side of the house, the structural engineer from NHBC reckons that side of the house had a deep foundation put in when the house was built by the builders to protect the house from any possible issues with the tree). This investigation is due before Christmas. If that shows nothing the next step will be bore holes in the garden to investigate further. This will take place after Christmas and when the weather is favourable.

NHBC seem to be taking ownership of this so far, however my worry is that this could be a lengthy process and with the mortgage due for renewal next year (I'd like to get it renewed sooner if possible due to personal circumstances likely to be changing in the next few months), that this could very well still be ongoing at the time of the renewal.

Whats the likely impact of this? Any survey by a mortgage lender will pick up these cracks. The LTV rate of the mortgage is currently about 84% as we were first time buyers back in July 2009. Has anyone been through anything similar? Is it likely to cause massive problems and potential retentions? or will the mortgage company be satisfied that NHBC are involved to fix the issue?

opinions4u

I doubt you'll be able to remortgage while the structural integrity of the property is in doubt.

kingstreet

If your LTV is 84%, you would be reliant on an increase in the value of the property in that short two year period to enable you to remortgage. The possible problems with the structure are an added complication.

You might not be able to remortgage, but it doesn't stop you asking your current lender what products it has for "customer retention" when your current deal ends.

Halifax, as an example, has a Product Transfer service which allows you to reserve a rate upto three months ahead of the current product ending.