Mortage Rejection

Chas3333123

I've recently been going through the mortgage application process with the Halifax, which has been turned down due to the surveyors report. The flat is an ex-local authority high rise tower block, and I only needed to borrow the sale price of £21,000 to buy the property with the Right To Buy, at 60% off the market value of £56,000.

I paid the Halifax £280 for the privilege of having the surveyor check over the property, and have asked the Halifax to supply me with his report. I think it's only fair that I at least have a copy for my £280. The adviser I dealt with says that there isn't a report, as the mortgage was turned down.

What rights do I have to obtain a copy of all the information that I paid for?

The lady in charge of Right To Buy says she has never known an application to be turned down for the reason of the property itself, and is also very interested in seeing the surveyors findings, and would like her legal department to have a look over it too.

Any advice on this would be most gratefully received.

Thanks.

ACG

The valuation is done for the lender and the lender alone.

Lenders do sometimes supply it to the buyer but not always.

A valuation confirms the property type (flat/semi/terraced etc), how many bedrooms/bathrooms etc, how much the property is valued at and whether there are any major defects (cracks in the wall for example) and whether it is suitable for lending purposes.

Its a 1 page document with tick boxes for most of it. Its not a report.

If you want a report you would need to pay for a homebuyers report or building survey.

If you only need £21k and struggling to get a mortgage, you could theoretically get a loan for up to £25k. It might cost you more but it avoids you having to apply for a mortgage.

Chas3333123

Thanks for the swift response.

Would it be worth trying another lender? One that offers a fee free option? Is it fair to assume that the reason the first survey got a fail, that it'd be flagged again by another survey? I think that it may have been that the lender thinks that the property may be hard to sell on the open market in case of default on repayment and repossession... Does that sound likely? (Despite the lending being so much less than the market value)

ACG

That will be the reason.

There is no point making applications - fee free or not. If you make too many it will hammer your credit score.

For cases like this, I tend to try smaller lenders where you can send them a google maps photo of the property and explain it to the underwriters before making an application. They can then decide whether it is within criteria or not - this saves you time, wasted applications, searches on your credit file and potentially money also.

GMS

How many floors in the block?

What floor is yours on?

Is there a lift?

What percentage are already privately owned?

Some properties fall outside of acceptable criteria so the Right to Buy person is talking nonsense.

Chas3333123

I'm on the 14th of 14 floors. Yes, the penthouse. The whole block has been completely updated over the last year in a multi-million pound refit, so new wiring, plumbing, heating, double-glazing, solar-panels, external cladding. It's 90 odd percent efficient. It's at the heart of a tens of millions of pounds regeneration scheme. Yes, there's a lift. Service charge will be around £24/week. I think there is only one other owner in my block, but quite a few more in it's nearby twin. If I bought then ownership in my block would be about 2%.

I did voice my concern about the viability of me getting a mortgage for this particular type of property with the Halifax adviser I dealt with. She was very happy to say that she didn't see it being a problem. Shouldn't she have gone away and done some research on my behalf before giving an AIP? (...was I badly advised??)

For me, I think buying is a no-brainer, as I'd be able to recoup the sale price by renting out over 5-10 years if I decide to move on. The thought of having to sell though is of some concern, though, surely, I'd be able to get back at least the amount paid... Anyone have any experience of this??

amnblog

You could have checked with Halifax's valuers before application if the property was acceptable.

A local broker should have done flats in the block before and therefore know who lends on it.

Chas3333123

amnblog wrote: »

You could have checked with Halifax's valuers before application if the property was acceptable.

A local broker should have done flats in the block before and therefore know who lends on it.

I contacted a local broker, and explained the situation. He recommended the Halifax. (There appear to be only four lenders that go under £25,001)

Chas3333123

Chas3333123 wrote: »

I contacted a local broker, and explained the situation. He recommended the Halifax. (There appear to be only four lenders that go under £25,001)

I assumed that the adviser was the bridge between myself and ALL aspects of the Halifax's lending criteria, and that if that person was doing their job and wasn't sure about something, that they'd find out the particulars on behalf of the customer. That would seem reasonable.

kingstreet

Answered the other copy of the thread;-

https://forums.moneysavingexpert.com/discussion/comment/65437999#Comment_65437999