Virgin Money issues and unfair valuation

vase

Hi all

I had a DIP from Virgin a few weeks ago and made a full application through a broker two weeks ago. I called them part way through as I could not get hold of the broker to ask if there was anything they needed. I was asked a couple of questions and then told that the valuation would take place the following week, indeed the £214 fee plus the £99 application fee was taken out of my account that day.

A little apprehensive given that I have had adverse credit in the past (all off credit file now with only a 2011 arrangement to pay showing), I asked what the process would be from this point and would my credit check form part of the process. I vas categorically told that no further checks would be made, the credit score was fine for 90%, and that the mortgage would be offered based on payslips and valuation.

They have informed us today that, due to the AP, they will only lend 85% LTV, despite no changes to my file since the DIP. Now, I understand that a DIP is exactly that, in principle, but I was led to believe that it was fine and am concerned by what seems to be an unfair system on paying the valuation fee first.

So, it seems I have two options:
1. Find the extra £10k or so (not possible, so not an option actually!)
2. Apply with Aldermore, with whom I also have a DIP.

The problem with option 2 is another valuation fee, this time of £430! The estate agents called earlier to say that a surveyor has been in touch on behalf of Aldermore and it's the same guy as the one who provided Virgin with the valuation! It doesn't somehow seem fair that this is allowed to happen - is it?

Anyway, I'd there anything I can do in your opinion? Either to talk to Virgin, to find a away to avoid the second valuation fee or, do I just accept it and hope that this second application will go through?

Long post, apologies but help very much appreciated. I expect it's been said a million times on here, but bloody hell this process is a nightmare!

Thank you.

Dave_Ham

You will have absolutely no joy with Virgin, an inflexible lender and they are marmite with the advisers on here. Not my favourite by any stretch!


Why are you restricted to Aldermore or Virgin?

vase

Thank you. Think I've learnt that now!

It's just that, when I started the process, a couple of defaults were showing from 5+ years ago! then by the time my house sold! they'd dropped off so perhaps I could get an offer elsewhere but am going with Aldermore because the DIP is there.

Am feeling pretty negative about my chances elsewhere. This mortgage is the govt Help to Buy, so fewer lenders and higher rate. The rate is 5.13%, which I know is steep but am counting my lucky stars on the possibility of getting one.

Do you have any thoughts?

Dave_Ham

You are having a nightmare in my opinion.


Aldermore are not a bad lender, but they are under intense pressure and it will take 4 weeks minimum to get a mortgage offer.


I cannot imagine your Estate Agent will be pleased to see Aldermore used and unsure they (under the guise of Vendor) will extend you this much time.


Surely there is a better option with a clean credit file now (aside from the AP)?

vase

Oh God! Not sure what my options are to honest. Will talk to broker tomorrow. My worry is that I go with another lender only to be back to square one again, causing issues with time and that extra search.

The vendor of the house we're buying is not living at the house, and no chain so would expect them to be ok. I'm paying asking price, with FTB on mine, so are pretty good buyers. I think!

Aargh!

Dave_Ham

Be Candid with your broker, neither Virgin or Aldermore in my opinion were good selections.


Virgin are unreliable and AP on file and personally would have swerved Virgin and now as a second lender, Aldermore will not move quick enough.


If there is any hope to keep this together, you will have the same Estate Agent selling and buying as they will want you to proceed financially and may cloud their usual everything done by tomorrow attitude.

vase

Thanks for your advice. I will speak to him tomorrow. I am rather !!!!ed off as I asked explicitly about the AP, he said it would not be an issue. I don't think he declared it to be honest. The fee is £995, which also is beginning to become a bugbear.

Dave_Ham

Same as anything, if you get what you pay for; a higher than average fee can be an overall saving but in this case it does not feel so much so.


Bat any other lender selection past the people on here, as at this juncture there are certainly lenders to avoid and lenders likely to be quicker/easier to be confident to place with.


Good luck