First time buyer trying to get a Clydesdale Mortgage

tinofthewards

Hi there I am hopeful someone can offer some reassurance.

Myself and my Partner are first time buyers and we have had a terrible time trying to buy a new build property. We have really been through the ringer and even been declined for help to buy.

However, we though we were finally out of the woods when we were told we were 'approved' for a mortgage with Clydesdale over the phone. We were so relieved as there is an old default for a mobile phone which is about the fall off the my credit file, which meant all of the high street lenders had declined us. Clydesdale are our last chance.

The Clydesdale rep told us they could ignore the default as it was so long ago and the debt was settled. However, they are now telling us that before the formal offer goes through they need to valuate the property. The house will not be built until December and we can not wait that long!

I thought we would be okay as it was just a formality, however after reading similar threads on here..perhaps we have misjudged the Clydesdale process and actually are no where near getting our house.

The builders are also saying they cant hold the property for us until the house is built. I have no idea what to do about this.

I thought the valuation was just a formality and that we were on our way. Perhaps we were wrong for getting excited.

Can anyone offer an advice? Does it sound like Clydesdale are likely to offer us the Mortgage?

Much appreciated!

bb88

Can't speak for Clydesdale specifically, but I've just had a mortgage approved with Halifax for a new-build house (not help to buy either) - it's not ready until November and is essentially a shell at the moment. Despite that, as the house has started they sent a surveyor out to do the valuation anyway, to me it sounds like it is just a formality that they carry out as I'm not sure what he was expecting to see exactly when they got to the building site.

I was told by the mortgage advisor I used even if it hadn't started they'd still require a valuation to be carried out and would just do it off the plans from the plans and compare it to similar houses near by, so it's certainly not unheard of to be in the position you are.

No idea if Clydesdale is any different, but I'd expect them all to work in a similar sort of manner personally.

glosoli

The valuer that Clydesdale Bank send out can value the blueprints of the property, and advise that when completed the property will be worth X amount. If the property is being built by a reputable builder, then the property may not have to be re-inspected again prior to the offer being issued.

The property does not have to be fully constructed prior to the valuer going out.

And yes, if you have been "approved" for the mortgage at this stage with Clydesdale, then it has been approved subject to satisfactory valuation, receipt of documents from yourself, and standard legal checks. Don't worry about the credit element as by this stage it is no longer a concern.

tinofthewards

Hi there,


Thanks for that.. phew. We had heard that Clydesdale have a different process and were very worried.

In terms of the valuation though, the rep is saying that it must be our actual property and it must be built. We have asked for clarification again.

It just doesn't seem reasonable, if they do require us to wait until it is built and then something goes wrong it gives us 0 time to secure another mortgage.

I had seen on a previous forum that Clydesdale process is:

Survey
Underwriter
Credit check
Offer

I really hope this isn't true.

Thanks again

tinofthewards

They also sent us out 'initial documents' which includes a gift letter for a family member and a direct debit form and they have asked for proof of deposit. Surely this is good news?

glosoli

The above process is if you are applying through the intermediary channel through a broker, and when you say "Clydesdale Bank Rep", I presume you are going through Clydesdale directly.

The process is as following:

1) Complete interview,

2) Credit check carried out,

At this stage, it can either be a straight approval, or may be referred to an underwriter. Regardless, yours seemed to be approved at this stage.

3) Documents issued, and valuation instructed,

4) Documents received back, and valuation report returned

5) Assuming both above are satisfactory, your offer document is issued to yourself and to your solicitor.

In regards to the property having to be fully built prior to completion, I don't know the exact ins and outs of your application, but being a Clydesdale Bank mortgage advisor myself, I have had cases were the offer of loan has been issued long before the property has been fully completed, and where the property has been surveyed from only blueprints. I would double check this with the advisor.

tinofthewards

Ahhh great thank you!

I feel much better now. Just have the question over the valuation, we emailed the advisor today asking if we could use he blueprints but he didn't get back to us which is unusual for him so perhaps he wasn't sure and is double checking.

I really hope things get easier.

Thanks again for you help!