Mortgage retention super problems

MORTGAGE_RETENTION_STRESS

Hi all, i will keep this brief, but i really really could do with some advice!!

Mortgage from Nationwide, all fine with a 15% deposit. Valuation - retention of £7,500. House has no kitchen or bathroom (we were aware..... ) However, Nationwide will not do a retention as such. I don't understand, neither does our mortgage advisor to be honest. She has tried everything and contacted everyone she can - but no joy. The only options we are given:
-pay an extra £7,500 to keep our initial product and payments (we've paid the fee already) but that's it - no retention will be released.
-pay an extra £100 pounds a month for the duration of the mortgage, again, that's it.
Why would we have to pay more if they are never going to release any more money? Why have the rates changed at all?
NOWHERE was there as option to have the retention released back to us - so what the hell is the point of a retention?????????????? We can borrow off parents in the short term, but obviously would have liked to pay this back on release of the money, but clearly this is not an option. The advisor did say the systems used to work it out automatically, but no longer do. She tried Head Office, but seemed to get a different answer every time. But this has left us completely in limbo.

Any advice (anything except Nationwide are pants!they are the only ones who take all of our income & majority of benefits into account) will be most appreciated.

Thank you

GMS

Are you sure they haven't imposed a full retention due to the lack of bathroom and kitchen?

MORTGAGE_RETENTION_STRESS

Definitely just £7,500. There's a fitted downstairs wc and sink, but no bathroom. Would be easy to fit kitchen and bathroom - obviously we intend to do anyway, but is very complicated without the retention. Estate agents say we can do works between exchange and completion, but mortgage advisor can't get us to exchange point without sorting the mortgage first.

GMS

Can the vendor not do the works?

Don't attempt to exchange without a mortgage offer.

To be honest your broker should be dealing with this, not you having to try to solve.

MORTGAGE_RETENTION_STRESS

Estate agent says very unlikely the vendor will do works, 2 main reasons,

1 - the couple have broken up, have no money & will only argue over it (not to sound unsympathetic but not really my problem.....)

2 - they've had other valuers that have not put the retention on it, but clearly all companies are different.

The broker herself seemed confused, but as she is our only contact at Nationwide, just makes it harder. Really feel like she's trying, but i need answers, not effort.

Dave_Ham

I would split up with someone if we cannot even sort out having a kitchen and bathroom in the house!!!

Seriously though, I think £7,500 is generous. Most surveyors would not even value the property as suitable security..

Take it or pull the plug on the entire property...

MORTGAGE_RETENTION_STRESS

Hi Dave,
We would take it if we could, but that's what im saying, we do not have the option to have the money released back to us - therefore in terms of the mortgage, they will not give us the retention - but they do mortgages with retentions.......it just doesnt make sense to me.

Dave_Ham

I am confused!

So they are saying the retention is timeless and effectively it is not a retention, rather they are limiting your loan available and reducing loan to value

What value will they advance you?

MORTGAGE_RETENTION_STRESS

Yes, they will reduce the amount they will loan. However, although this means we will then have to up our deposit by £7,500 they are telling us we HAVE to do this in order to get the rates that were agreed at the 15%....So our LTV becomes 80%, and we have to do this in order to keep the rates we were offered at 85%. We put down more because they will give us less but the rates don'timprove and the retention just isn't an option, and that is the end of the options as far as they are concerned.
It is bonkers isnt it? It isnt just me?

Dave_Ham

Bonkers!

But and it is a big but, most lenders would have told you value was £0

To be honest I may not even have put an application in, assuming I would have been wasting your valuation fee given there being no kitchenand bathroom

If you want the house, get over the frustration and take the product...

MORTGAGE_RETENTION_STRESS

Yet the estate agent is adament that the previous 2 valuations had no clause at all, and the valuation of 119k was correct, it will be worth more once all works are done.