We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
Mortgage application declined after surveyor OVER-valued
lsmith87_2
Posts: 29 Forumite
Hi,
I'm looking for some advice. I had a mortgage application agreed, and was at the stage of the lender going to survey the property. Based on the survey they have come back to me to advise based on the survey and their valuation they will NOT offer me the mortgage as they feel the property is valued at a 'considerable' amount MORE than what I am paying for it...
My mortgage advisor is very shocked at this... Yes I got the property at a good price, but not that much less. I would understand if they undervalued it, but they are saying its worth more!!
So confused and wondered if anyone has ever experienced this? My mortgage advisor is appealing their decision.
Thanks...
I'm looking for some advice. I had a mortgage application agreed, and was at the stage of the lender going to survey the property. Based on the survey they have come back to me to advise based on the survey and their valuation they will NOT offer me the mortgage as they feel the property is valued at a 'considerable' amount MORE than what I am paying for it...
My mortgage advisor is very shocked at this... Yes I got the property at a good price, but not that much less. I would understand if they undervalued it, but they are saying its worth more!!
So confused and wondered if anyone has ever experienced this? My mortgage advisor is appealing their decision.
Thanks...
0
Comments
-
I suspect they think it's a 'distressed sale' whereby a property is sold at a drastically reduced price due to the vendor's financial circumstances.
Some lenders will decline this type of purchase; which lender are you using?I am a mortgage adviser.You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
It's Santander. There was a house on the same street that sold for less than £10k less a year ago. It was up at a good price but think the woman selling just wanted a quick sale! But that's not my fault... It's good for me!0
-
How odd, you'd think the mortgage lender would want this.0
-
Guess the lender is worried the vendor will try to get their property back claiming they were blackmailed or coerced etc.Landofwood wrote: »How odd, you'd think the mortgage lender would want this.
OP What % did the valuation come back over your agreed sale price?Changing the world, one sarcastic comment at a time.0 -
Do you have the same or a similar surname to the vendor, or are you related in any way?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
-
-
Santander will not allow you to buy from a property investment company.
Maybe they dont want to be involved if they think you are the one being the property investor.I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I thought that the valuation survey can only come back with a valuation equal to or lower than the offer price. A higher valuation could 'artificially' lower the LTV so I thought that's why mortgage valuations are capped. Seems I was wrong to think that.0
-
Rollinghills wrote: »I thought that the valuation survey can only come back with a valuation equal to or lower than the offer price. A higher valuation could 'artificially' lower the LTV so I thought that's why mortgage valuations are capped. Seems I was wrong to think that.
Lenders only ever work off the lower of the purchase price or valuation, so there is no possibility of 'artificially lowering the LTV' as provided the value is at least what the buyer has agreed to pay, the lender doesn't care.I am a mortgage adviser.You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Mortgage_Mark wrote: »Lenders only ever work off the lower of the purchase price or valuation, so there is no possibility of 'artificially lowering the LTV' as provided the value is at least what the buyer has agreed to pay, the lender doesn't care.
Ok that explains it. But is it common for valuation to come above offer price?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 349.8K Banking & Borrowing
- 252.6K Reduce Debt & Boost Income
- 453K Spending & Discounts
- 242.7K Work, Benefits & Business
- 619.5K Mortgages, Homes & Bills
- 176.3K Life & Family
- 255.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 15.1K Coronavirus Support Boards