mortgage cancelled after valuation

BvG

Hi all,we had valuation done by the lender (Nationwide )on a property we want to buy.We are using a broker and today we were told that the lender cant lend against the house because there are shops across the road.thats it----Shops across the road!We are first time buyers,and don't understand why.there are loads of shops with houses around that sell.is it the lender being fussy or is it a real issue?thanks

Thrugelmir

Lenders set whatever terms they wish. The property has to provide suitable security for the money advanced. Properties close to commercial properties are often more difficult to sell. As a consequence better suited to cash purchasers.

MortgageMamma

Your broker should have known this. Or if he/she did not know, you may want to ask why they didn't check with the lender before submitting the application. Don't worry though, there are usually plenty of lenders who will do it but they can be picky about the % of commercial properties near yours, the type i.e. fried chicken and takeaway places are not desirable but things like a well maintained hair salon, an office type premises or accountants/estate agency would not have as bad an impact on valuations as the take away scenario.


Edit - I always use google maps when I'm given the purchase address before I do my research, not only does it satisfy my nosey nature it saves time and heartache for the sake of five minutes. You need to get your broker to go back to the drawing board and source you a new mortgage.

Kynthia

Lenders all have different criteria. I know some won't lend to properties over a shop, another didn't like a property as the communal entrance to the flats was on the side of the building on the driveway. However I bought a property that is virtually opposite some shops and had no trouble so i'm sure your broker will find you another lender.

BvG

finding another lender is the only way forward at this point but if the second lender denies mortgage for the same reason than I will end up loosing a house I like for no fault of mine and with a bad credit score

PollyPocket12

I have just been through similar over a different reason.... 4 times now

BvG

PollyPocket12 wrote: »

I have just been through similar over a different reason.... 4 times now

every time you get declined, there's a negative hit on your credit score so you might have a perfect score but after a few failed attempts ,your credit score becomes a reason for NO go...