Remortgaging a Buy to Let Property

Eazyglider

Hi All,


Our current 10 yr mortgage is due to expire in 10 days. We obtained a quote through a mortgage adviser and accepted it, filled in all the paperwork etc a month or more ago, ready to complete 19th Dec. Now they are asking for an additional £5K due to damp. I don't think the property is damp. Is it ethical that they can ask for this additional payment now we're at the 11th hour with little or no chance of getting another mortgage offer in time. We are asking to borrow £90K on a property they've valued at £185,000. Seems a little shady to me? Anyone else had this?

Thrugelmir

Who is asking for £5k? Has the lender imposed a retention until such time as remedial action has been taken. The lender would have only been aware of this fact once the valuation had been undertaken. So has nothing to do with ethics. But everything to do with their lending policy as a business. The value of the property is not part of the decision process in this instance.

Eazyglider

The new mortgage lender is asking for the additional £5K before they will complete. My argument is why did they not ask for this when the survey was done, at least then we would have had time to get some remedial work done or gone to another lender.

dimbo61

You can still look for another lender.
What happens when your current deal ends?
What does your lender put you onto SVR ?

Thrugelmir

Eazyglider wrote: »

The new mortgage lender is asking for the additional £5K before they will complete. My argument is why did they not ask for this when the survey was done, at least then we would have had time to get some remedial work done or gone to another lender.

Did the surveyor reports suggest that remedial work was undertaken. ?

Was additional £5k requested after the mortgage offer had been made?

Eazyglider

Thanks for your time. The original mortgage comes to the end of it's 10 year term & the company no longer offer buy to let deals so won't extend it. The survey which presumably showed up the damp was done more than a month ago. Why did they not raise the issue then rather than ask for the extra £5K on 9th Dec. We haven't seen the survey and the lender won't let us have a copy until we pay this £5K! That's what seems a little 'iffy', that they knew when the survey was done that there was damp but have waited until now to demand this additional money. And it's not like we're borrowing close to the value of the property.

Thrugelmir

Why do you have to pay the lender £5k? Surely the new lender will simply advance less.

I don't think the property is damp.

Thinking is the same as testing for. Might be an idea to get the matter investigated. Rising damp isn't always visible.