Mortgage refused on valuation

Tracytop81

Hi, has anyone experienced being refused a mortgage based on the valuation? The property is a 6 bedroomed, 3 reception rooms, kitchen, and dining room. The area is predominantly terraced properties ranging from 2-4 bedrooms. The reason for the valuation being declined is that they believe there would be limited demand for this property given the rest of the area?
What do I do now, this is my dream home, should I try a different lender? Does anyone know if they all base there decisions on similar criteria? I used Natwest as I have always banked with them. any advice please help!
Thanks

kingstreet

Does your family size evidence a need for such a property?

Tracytop81

Hi, no, there will definitely be more room than I require at present.

kingstreet

The lender may suspect you are going to let the property or turn it into an HMO/flats on a residential mortgage and it will not want to risk this.

Speak to an independent broker.

Tracytop81

How do I prove that is not the case? I have always had my heart set on owning a large family home! One that can host all the extended family at Christmas, new year, family celebrations, having a dining room that can accommodate everyone on a Sunday. So yes personally I will not fill the house day in day out, but there will be many times throughout the year that it will be full.

I'm worried that now you have said that every time I try to buy a large property, which is what I have been saving the deposit for, I will get turned down?

Also, I have had some advice to use the same bank as the one which the seller has his mortgage with as this might prove more fruitful, any advice?

Thanks!

Thrugelmir

How many bathrooms / shower rooms does the property have?

How many are en suite?

kingstreet

Tracytop81 wrote: »

I'm worried that now you have said that every time I try to buy a large property, which is what I have been saving the deposit for, I will get turned down?

Also, I have had some advice to use the same bank as the one which the seller has his mortgage with as this might prove more fruitful, any advice?

It's not going to be an issue because I've suggested it. It's going to be a potential issue for any lender which carries out plausibility checks on the property when it looks at the valuation and sees a single applicant.

I'm happy with the last suggestion. Speak to an independent broker. Going to the current owner's lender is meaningless if he has a wife and four kids...

AnotherJoe

Tracytop81 wrote: »

Hi, has anyone experienced being refused a mortgage based on the valuation? The property is a 6 bedroomed, 3 reception rooms, kitchen, and dining room. The area is predominantly terraced properties ranging from 2-4 bedrooms. The reason for the valuation being declined is that they believe there would be limited demand for this property given the rest of the area?
What do I do now, this is my dream home, should I try a different lender? Does anyone know if they all base there decisions on similar criteria? I used Natwest as I have always banked with them. any advice please help!
Thanks

What do you mean "the valuation being declined"?
Do you mean they've just said (in effect) "we arent interested in mortgaging a 6 bed house in this area so wont value it" ? If so then there must be some that will, so as said, try a broker.

ACG

Is this a property that was once 2-3 houses converted in to one?

If so I can see it being an issue. You could also have the problem that a 6 bedroom house for 2-3 people could be frowned upon by some lenders. I think Kingstreet is right, you are likely going to need a helping hand. Someone who can pick up the phone to the lenders/surveyors and run it by them before making anymore applications.

Tracytop81

Hi, property has 4 bath/shower rooms, none are ensuite. It was always 1 house although has had an extension at some point providing extra room downstairs, and has had the attic converted to create the 5th and 6th bedrooms.

I will get hold of a broker tomorrow and go from there.

Natwest said that the valuation came back as declined as there was limited demand for this type of property in the immediate residential area? Sorry it was an over the phone conversation today and that's the points I remember.

Thanks for everyone's comments!

amnblog

The lender's underwriters do not see it as a 'home for you'. Anyone one reading this post will see that the property is ripe for letting out to multiple tenants (when the trade calls a 'HMO' with limited lending options).


You were not to know, but you could have this problem with any Lender.


Cases like these need to be managed properly from day one by a competent broker.