Banks right to inspect mortgaged property.

Leafeysurrey

Can anyone tell me if the clause in a mortgage contract which says the bank has a right to inspect the property at any time and force repairs? The house is in the UK.


We are going to have to remortgage with the same blasted bank (don't ask) as other avenues have dried up and they have this clause in their mortgage. Our property does need work doing on it we know but it is being done slowly (in conservation area). We have good reason to suspect that the bank and its builders have already been outside the house inspecting it.

k3lvc

Not sure whether they can force repairs but they can certainly decline your remortgage/offer a lesser amount/change the terms

BattleToads

I think it's pretty normal, below is snippet from Nationwide's general mortgage conditions.

(vi) allow us to inspect the property at any reasonable time if we give you notice beforehand;

(vii) allow us full access to the property and to carry out or complete any building or improvement work required for the good repair or reinstatement of the property which you have failed to do;

Leafeysurrey

Thank you both for your feedback. I note that the nationwide clause says they will give you notice, my bank didn't give us notice but don't know that I was at home when they and the builders were seen. Our bank also says we only have two weeks to do the repairs before they will send in the builders to do the work for us at our cost.

I don't understand how they can do this, it's a serious conflict of interest given they will have all our financial details and know how much savings we have, send in the builders and charge over what we have in savings so putting us in debt and then make an asset grab.

Thrugelmir

Leafeysurrey wrote: »

T

I don't understand how they can do this, it's a serious conflict of interest given they will have all our financial details and know how much savings we have, send in the builders and charge over what we have in savings so putting us in debt and then make an asset grab.

No conflict of interest. The property provides surety for the debt that you owe. Therefore they have a financial interest in the condition of and future sale ability the property.

(I assume there's far more to your tale than has been said).

[Deleted User]

Leafeysurrey wrote: »

I don't understand how they can do this, it's a serious conflict of interest given they will have all our financial details and know how much savings we have, send in the builders and charge over what we have in savings so putting us in debt and then make an asset grab.

That sounds like one of today's more Ill-founded conspiracy theories.

Leafeysurrey

Thrugelmir wrote: »

No conflict of interest. The property provides surety for the debt that you owe. Therefore they have a financial interest in the condition of and future sale ability the property.

(I assume there's far more to your tale than has been said).

It's not the property that's important, it's the 2 acres underneath it with planning permission that is.

amnblog

Banks are in the business of lending money for profit. Not concocting opportunities to repossess and speculate.

Leafeysurrey

amnblog wrote: »

Banks are in the business of lending money for profit. Not concocting opportunities to repossess and speculate.

I think you have the default view how banking works in 2017....

Thrugelmir

Leafeysurrey wrote: »

It's not the property that's important, it's the 2 acres underneath it with planning permission that is.

Banks aren't property developers. Asset rich, cash poor is often a weak bargaining position.

jonesMUFCforever

amnblog wrote: »

Banks are in the business of lending money for profit. Not concocting opportunities to repossess and speculate.

I think the Reading office of HBOS thought this as fair game!