Should I try another lender?

dave02

Hi everyone, I need some advise please

Bit of history: I had a few late mortgage payments a couple of years ago but was pleasantly surprised when I was given a DIP by Nationwide. I went to full application on a new build Ben Bailey home. The affordability etc all stacked up more than well and the application was accepted subject to the valuation.

Now: The valuation came back at 185k on an original asking of 199950k so Nationwide have said no at those figures. The valuation was done by Countrywide an independent, NOT Nationwide own guys. I have also done some research and to be fair based on what the last ones were sold at within the last 6 months, I think its on the lower end of fair. Now I am happy to negotiate with Ben Bailey to a point but there is talk of them asking me to try another lender as Nationwide wont accept second opinion valuations.

My question is that if I go to another lender (which my very well decline straight away) and am accepted, go through the full application process all over again and then it gets down valued once again, will that scupper my chances if I then am forced to change property if Ben Bailey stand firm? Let alone more credit searches on my file!

I have another house that I could buy that would be a more than acceptable second choice and I could also lose this if I have to wait 2-3 weeks to go through the process again with another lender.

What would you do? I would prefer the Ben Bailey (just) and would consider possibly meeting them somewhere in between the 185 and 199950 but am scared that if I go to another lender it will !!!! everything up completely! Can I just refuse Ben Baileys request to do this and make them a speculative offer to do a deal???

Thanks in advance for any advise

ACG

Ive been doing a mortgage for someone who was buying a house off ben bailey homes. Half way through the process they told me to put a hold on instructing the valuation as they had all come back down valued.

Have the offers been agreed for the figures you have seen or have the sales actually completed?

If the sales have completed then call up nationwide with the details and appeal the decision.

ChopperST

We had the same issue last year with our new build property.

Our mortgage provider down valued the property 2.9% based on what we had agreed with the builders. We simply had to find the cash on the difference, luckily we had some investments that we were able to cash in. 1 week later our neighbours moved into the exact same house as ours (ours even has a slightly bigger garden) and they paid £22k more than us.

It really is farcical sometimes.

Good luck whatever you decide to do.

kingstreet

dave02 wrote: »

The valuation was done by Countrywide an independent, NOT Nationwide own guys

Countrywide is Nationwide's panel manager and handles all the Nationwide mortgage valuation work, unless it has no coverage or is too busy in a particular area, then it panels it out to an independent firm.

If you change lenders, there is a chance Countrywide may be asked to value, as there only a handful of corporate firms and they dominate this market.

dave02

ACG wrote: »

Ive been doing a mortgage for someone who was buying a house off ben bailey homes. Half way through the process they told me to put a hold on instructing the valuation as they had all come back down valued.

Have the offers been agreed for the figures you have seen or have the sales actually completed?

If the sales have completed then call up nationwide with the details and appeal the decision.

The sale isn't completed yet as the full mortgage offer has been held back due to the down valuation. Ive been told that an appeal is unlikely to be successful as the 15k is too much of a difference.

Do you think trying to change lenders is a good idea or not? Will it make a mess of everything bearing in mind I could just change properties which will most likely stack up as its not a new build and then ill get a full offer?

dave02

ChopperST wrote: »

We had the same issue last year with our new build property.

Our mortgage provider down valued the property 2.9% based on what we had agreed with the builders. We simply had to find the cash on the difference, luckily we had some investments that we were able to cash in. 1 week later our neighbours moved into the exact same house as ours (ours even has a slightly bigger garden) and they paid £22k more than us.

It really is farcical sometimes.

Good luck whatever you decide to do.

Did you try to negotiate with the builders? Any joy?

Thrugelmir

Have you been offered any incentives in the form of discounts, fixtures and fittings, stamp duty etc?

ChopperST

dave02 wrote: »

Did you try to negotiate with the builders? Any joy?

We had already negotiated them down 12% on their asking price as it was a plot that was built and not sold. Not really their fault our mortgage lender's valuer down valued the plot to be fair.

We just decided to cash some of our S&S ISA to find the difference.

It really does show how subjective these valuations are when another valuer goes in a week later and values an identical property £23k more!