Mortgage turned down on bases of survey, what now

murphster

Hi, people may have seen my previous posts about remortgaging to but to let and purchasing a new home. I applied to Nat West for both, I have the official offer for the new house (broker said I flew through lending criteria). My problem is, the survey for my current home came back short, 10,000 less than the 80,000 I need. The broker doesn't think I can appeal, she has suggested I try Woowhich, my current provider. I have an appointment with them this morning.

I'm pretty sure they will make me an offer (AIP), but surely they will want to do a survey too. What I'm asking is, does anyone know how Woolwich will survey a house they already mortgage if the owner is switching to buy to let, the broker said they might do a calculation based on last survey (I have my KFI from them in 2011, which was another remortgage for better rate and it says value of 85,000). Nationwide have one of these tools on their website and it values my house at 82,000. Also do building societies value houses differently if they are but to let than remortgage. I had telephone Nat West during the week about the progress, they said they had the survey was back but there was no rental income on it so the had requested this from the surveyor. Why did they do that if they already knew it wasn't worth the 80,000.

I'm worried that I'm going to through this today get another AIP for it to fall through again at the survey, but how can they say a house was worth 85,000 in 2011 and not 80,000 now.

Any other ideas anyone?

amnblog

Your broker has given up and sent you to your current provider (Barclays Woolwich)?


Presumably they have little time in the business (or never deal with Barclays) or they would know a Broker can get a Barclays valuation on your property at no cost in about one working day.


If I had your address on first thing Monday am I would probably have the valuation figure by close of business same day.

murphster

Thanks, yea she said they didn't work with Barclays (this worried me a bit). She said there were some building societies who could do 80% LTV but to try barclays first then get back to her. I did, they declined based on affordability, I've never been turned down for anything. Now I'm at my wits end. If barclays said no will the others do the same and will them saying no make this more likely. Obviously I'm gutted I'm going to loose the house I wanted to buy but I also feel I've dishonestly made an offer and feel terrible about the tenant who wants to rent mine.

amnblog

Woolwich have recent closed up their criteria on affordability for buy to let cases making judgements other lenders will not.

Perhaps you need a better broker?

murphster

She said she will try others on Monday, there are others that can do 80 % LTV, I could manage this by making up the shortfall with savings. I'm guessing these will be really expensive. Have I ruined my chances of getting accepted by being turned down and now having a total of three mortgage application now.

murphster

amnblog wrote: »

Your broker has given up and sent you to your current provider (Barclays Woolwich)?


Presumably they have little time in the business (or never deal with Barclays) or they would know a Broker can get a Barclays valuation on your property at no cost in about one working day.


If I had your address on first thing Monday am I would probably have the valuation figure by close of business same day.

If I gave you my address would you be able to find this out or could you tell me how to do this. I've looked on the Nationwide site and it estimates 75,000 based on when I bought the house and how much I paid. I could manage this valuation, 70,000 seems way of the mark,

amnblog

I cannot be doing work that your broker should be doing for you.

You have engaged them, not us.