Mortgage Retention more than Mortgage

Nfinch

Hi, I'm hoping someone out there may be able to offer me some advice. I've applied for a £100k mortgage which initially was returned all fine and approve. Then I've been told that there is a retention on the amount but on £192k?

This was arranged through a mortgage broker and I have asked them to double check this is right and someone hasn't made a typo but he's come back to say this is correct. I'm waiting for the full report to get a idea of the work they are requesting.
But has anyone ever come across this before, even the mortgage broker hasn't - I can only assume it's a mistake...

Any help much appreciated!

Thanks

AnotherJoe

LOL. Better get your cheque book out !

ACG

£192k is the purchase price im assuming?

It just means they are not happy to lend on the property until the works are complete. Other lenders may take a different view. The alternative would be to have the works completed and another valuation carried out, which could be done before or after exchange.

Speak to your broker, your agent and solicitor.

Nfinch

Thanks. We!!!8217;ve already tried to get a mortgage through Coventry but they refused because its got a small section of low grade asbestos (they wouldn!!!8217;t even consider a retention for this).

The price we!!!8217;re paying is 200k but can!!!8217;t see how they can ask for more retention than we need the mortgage of. I!!!8217;m not even sure what kind of work they want.

Would all work need to be carried out before exchange or would a bridging loan be a good alternative to get the sale completed? This is new to me so am not sure if this work can be down between signing the contracts before the exchange or if the whole sale needs to be completed. I doubt there would be any reduction on the purchase price or the current owners doing it.

AnotherJoe

Nfinch wrote: »

I doubt there would be any reduction on the purchase price or the current owners doing it.

The owners position on that might change if they found their house is unmortagable. Have you tried other lenders?

Nfinch

Yeah the first one declined the mortgage because if a small amount of asbestos. We!!!8217;ve been trying to get permission to have the work done before signing at our own cost but the seller wants everything in the contract, even though we have builders insurance.

This is the second one we!!!8217;ve tried.