Anyone want to join me? Awaiting Mortgage decision...

E_D_FTB

vi009na said:

E_D_FTB said:

vi009na said:

vi009na said:

My updates so far

• 16th June: Got AIP from NatWest via broker charging too much fees and indirectly forcing me full application with NatWest. 
• 21st June: Applied to HSBC Mortgage which was good deal compare to NatWest. Also, via fee free broker. All documents submitted upfront 
• 25th June: Additional clarification requested on monthly commitment. Provided required info and silence since then.
• 2nd July: Full mortgage offer received subject to valuation
  
• 9th July: Valuation carried out.
  
• 13th July: Broker contacted house down-valued to 250k from 276k asking price.

Seriously disappointed while writing this post. No idea about next steps. Just sent email to Estate Agent regarding this. Haven't said anything about renegotiating price etc. as being FTB I had limited 10% deposit only and no idea what I can do with big price drop. 

Now, EA and Vendor suggesting me to go to another lender and hope for good valuation. As vendor will not sell house for 250k. 
I know another lender will also have similar valuation if not 250k exact. However if seller backs out at that point, I won't be able to purchase any property due to two hard checks on credit file. 

Can anyone suggest, what could be the best way? I do not have any additional money being FTB. No one, not me or estate agent or vendor suggesting or making first move to negotiate on new price at this time

That's a horrid situation. My friend had a similar situation, and simply had to apply to different lenders and hope they would value the property higher. Did they give any indication of why the valued it under the asking price?

Let me know how it went for your friend? when his/her second valuation due? 

I am not planning to go to another lender as they all use eSurv (HSBC, Barclays, NatWest and Santander etc). So there are hardly slight chances it will be better if not exact 250k.

Lets see I have asked for couple of days from them, if they negotiate price then only I can go ahead else, need to look for another property to buy. Atleast I have mortgage approved and can go for new properties valuation with HSBC until offer runs out in next 6 months. 

She was able to add enough to her deposit move from an 80% mortgage to a 75% mortgage. But that was after 3 applications which undervalued the property.  Hope you can work it all out!

goodwithsaving

@vi009na many of us who are not FTB don't have much to add in as cash either, if anything. That is not a problem unique to FTB. Your sellers may have no leeway either.
HSBC may have used AVM. Some lenders are still using physical inspections (via Countrywide and the like). It may be that going with one of those would result in a different valuation. 
The mortgage is against the property, so I'm afraid the 6 month expiry doesn't apply if you go for another property, you need to apply again.

vi009na

greensalad said:

vi009na said:

My updates so far

• 16th June: Got AIP from NatWest via broker charging too much fees and indirectly forcing me full application with NatWest. 
• 21st June: Applied to HSBC Mortgage which was good deal compare to NatWest. Also, via fee free broker. All documents submitted upfront 
• 25th June: Additional clarification requested on monthly commitment. Provided required info and silence since then.
• 2nd July: Full mortgage offer received subject to valuation
  
• 9th July: Valuation carried out.
  
• 13th July: Broker contacted house down-valued to 250k from 276k asking price.

Seriously disappointed while writing this post. No idea about next steps. Just sent email to Estate Agent regarding this. Haven't said anything about renegotiating price etc. as being FTB I had limited 10% deposit only and no idea what I can do with big price drop. 

This is exactly what I'm fearing. Also with HSBC and FTB. We only have 5% deposit, we have a little bit of extra cash but not much. Keen to hear how it goes with your vendors/EA regarding the downvaluation.

If you offered asking price it seems ridiculous to me that they could expect you to pay that much when the property isn't "worth" it. My big fear is that we offered a high price because the property was listed OIEO and of course they will never tell you actually how much they think it's worth!

Property was listed for 295k then reduced to 289k and then went to Sold - STC. Again after a month it came back as previous buyer dropped out. Listed for 284k and offered was 276k. Now valuation is 250k. Strange 

I did lots of other valuations online and only zoopla gives valuation as 288K for this property. Others are giving around 240k to 260k

vi009na

goodwithsaving said:

@vi009na many of us who are not FTB don't have much to add in as cash either, if anything. That is not a problem unique to FTB. Your sellers may have no leeway either.
HSBC may have used AVM. Some lenders are still using physical inspections (via Countrywide and the like). It may be that going with one of those would result in a different valuation. 
The mortgage is against the property, so I'm afraid the 6 month expiry doesn't apply if you go for another property, you need to apply again.

True, anyone can face this problem however FTB's are less prepared for down valuation then experienced buyers. 
Also FTB main target is to get property to live in. 

Debs757

vi009na said:

E_D_FTB said:

vi009na said:

vi009na said:

My updates so far

• 16th June: Got AIP from NatWest via broker charging too much fees and indirectly forcing me full application with NatWest. 
• 21st June: Applied to HSBC Mortgage which was good deal compare to NatWest. Also, via fee free broker. All documents submitted upfront 
• 25th June: Additional clarification requested on monthly commitment. Provided required info and silence since then.
• 2nd July: Full mortgage offer received subject to valuation
  
• 9th July: Valuation carried out.
  
• 13th July: Broker contacted house down-valued to 250k from 276k asking price.

Seriously disappointed while writing this post. No idea about next steps. Just sent email to Estate Agent regarding this. Haven't said anything about renegotiating price etc. as being FTB I had limited 10% deposit only and no idea what I can do with big price drop. 

Now, EA and Vendor suggesting me to go to another lender and hope for good valuation. As vendor will not sell house for 250k. 
I know another lender will also have similar valuation if not 250k exact. However if seller backs out at that point, I won't be able to purchase any property due to two hard checks on credit file. 

Can anyone suggest, what could be the best way? I do not have any additional money being FTB. No one, not me or estate agent or vendor suggesting or making first move to negotiate on new price at this time

That's a horrid situation. My friend had a similar situation, and simply had to apply to different lenders and hope they would value the property higher. Did they give any indication of why the valued it under the asking price?

Let me know how it went for your friend? when his/her second valuation due? 

I am not planning to go to another lender as they all use eSurv (HSBC, Barclays, NatWest and Santander etc). So there are hardly slight chances it will be better if not exact 250k.

Lets see I have asked for couple of days from them, if they negotiate price then only I can go ahead else, need to look for another property to buy. Atleast I have mortgage approved and can go for new properties valuation with HSBC until offer runs out in next 6 months. 

Santander use Countrywide surveyors 

vi009na

vi009na said:

My updates so far

• 16th June: Got AIP from NatWest via broker charging too much fees and indirectly forcing me full application with NatWest. 
• 21st June: Applied to HSBC Mortgage which was good deal compare to NatWest. Also, via fee free broker. All documents submitted upfront 
• 25th June: Additional clarification requested on monthly commitment. Provided required info and silence since then.
• 2nd July: Full mortgage offer received subject to valuation
  
• 9th July: Valuation carried out.
  
• 13th July: Broker contacted house down-valued to 250k from 276k asking price.

Seriously disappointed while writing this post. No idea about next steps. Just sent email to Estate Agent regarding this. Haven't said anything about renegotiating price etc. as being FTB I had limited 10% deposit only and no idea what I can do with big price drop. 

I am not agreed with HSBC valuation which wasn't look like physical one, hence I have decided to go to another lender NatWest and also go for home buyer report so they will have to do physical valuation.

The next door property on the same road sold for 275k in March 2021, another property last year Nov for 257k so 250k is ridiculous provided this the biggest property on that road with 116 square meter. 4 bed 3 bathrooms and attached single garage. Other two properties mentioned were 3 bed houses.

What do you guys think about my decision? Thanks 

greensalad

Got the HSBC paperwork this morning and combed through it, cannot see anywhere it mentioning any conditions of the offer so I think it's true, valuation was fine! We've been panicking so much about this and it was all for nothing!

So my timelines are:

Friday 9th July: DIP received from HSBC via broker (Habito)
Monday 12th July: Application submitted to HSBC
Monday 12th July: Valuation booked
Friday 16th July: Successful application verbally confirmed by broker
Sunday 18th July: HSBC offer documents received

  

FirstTimePlx

greensalad said:

Got the HSBC paperwork this morning and combed through it, cannot see anywhere it mentioning any conditions of the offer so I think it's true, valuation was fine! We've been panicking so much about this and it was all for nothing!

So my timelines are:

Friday 9th July: DIP received from HSBC via broker (Habito)
Monday 12th July: Application submitted to HSBC
Monday 12th July: Valuation booked
Friday 16th July: Successful application verbally confirmed by broker
Sunday 18th July: HSBC offer documents received

  

Congratulations.

FirstTimePlx

First Time Buyer here;

## April 2021 - DIP/AIP - Halifax
15 July 2021 - House - Offer Accepted
16 July 2021 - Completed Mortgage Application/ Hard Check/ Income Verified [Straight 2 Lender, Without Broker]
16 July 2021 - Paid for Home Buyers Survey; (Waiting for a date on the Survey)

One of the things that worry me, is the survey. I am hoping that the house is worth what it is being sold for. Especially since it has had most of the kitchen and bathroom done.

Here is to hoping and waiting.

(I have managed to do all of it without a broker, to cut a few corners and pinch a few pennies).

vi009na

FirstTimePlx said:

First Time Buyer here;

## April 2021 - DIP/AIP - Halifax i7 
15 July 2021 - House - Offer Accepted
16 July 2021 - Completed Mortgage Application/ Hard Check/ Income Verified [Straight 2 Lender, Without Broker]
16 July 2021 - Paid for Home Buyers Survey; (Waiting for a date on the Survey)

One of the things that worry me, is the survey. I am hoping that the house is worth what it is being sold for. Especially since it has had most of the kitchen and bathroom done.

Here is to hoping and waiting.

(I have managed to do all of it without a broker, to cut a few corners and pinch a few pennies).

All the best 👍
Don't think broker will do anything special unless complicated case. 
Other that that they would delay in relaying communications from lender which will add 3-4 days extra in getting offer or decision 😂
Went through the pain. Lets see how it goes 2nd time. Atleast I have ref number now to verify with lender directly though went through new broker this time.