Mortgage valuation rejected

brzone926

My friend is purchasing one bedroom flat in Tolworth area for 256K.
Because she is not very good at English, I was from time to time involved in the process to help her.

The mortgage advisor assured many times that she can get the mortgage confirmation within a week time as she has a close connection with the H bank and asked my friend to pay all other fees in advance, and advisor also set contract exchange date due after 28 days. However, advisor did not receive any response even after two weeks. When my friend called to find out the status, the advisor said the valuation wasn't passed due to overpriced amount, compared to other same flats. And the advisor told my friend that she would appeal against valuation decision three times.

After weeks again, my friend got contract from solicitor but was not getting proper responses from mortgage advisor and mortgage advisor avoiding my friends calls.
My friend sent an email to chase once again - complaining the processes.


The advisor came back to her saying that agency cannot lower the property price but they talked with H bank for hours. Now for some reasons which need to be clarified further, my friend needs to pay mortgage with higher rate, changed from 1.5% to 2.9% 2 years fixed, plus additional fees to bank. And now it is her decision, when market rate is even lower. Does valuation report influence any change of rate?


And I am also so disappointed by how agency and advisor play with customers.
My understanding is the advisor made false promises - for overpriced property, and put her in a rush to make other payments early, not giving any solutions to keep her secured to purchase the property.
Is there any way my friend can get things back if she gets out of purchasing that property?

Thrugelmir

The price is a matter for your friend and the vendor of the property to negotiate. No one else. Appealing the valuation is unlikely to be successful.

Landofwood

It's not the advisor's fault that your friend offered to pay too much for a house is it?

amnblog

It sounds like your friend has been using the mortgage adviser that works with the Estate Agent. Is that correct?


The Estate Agent wants your friend to pay the full price for the flat, even if the valuer says it is worth less. That way the estate agent gets his money for the sale and so does the mortgage adviser for the mortgage. They do not care if your friend gets a good deal.


If the value is lower and the mortgage size is the same, the pricing on the mortgage will increase. That is how it works.


Perhaps your friend should walk away from this flat and buy another one that is worth the price?