Mortgage Delays NatWest

Basset.hound.mum

NatWest are continually putting obstacles in the way thus delaying the buying process, if we're not careful, the selllers will run out of patience, it's taken several months already
Buying a small business that closed due to illness but we are opening it again, have 40% deposit, have supplied ALL paperwork, business plans, accountant approved figures & projections
We've been self employed for years and have proven record.
Loan approved in principle weeks ago. Valuation survey came back fine BUT now they want the surveyor to provide income projections!!
Surely this isn't normal procedure
Anyone help at all please

Thrugelmir

Basset.hound.mum wrote: »

Loan approved in principle weeks ago. Valuation survey came back fine BUT now they want the surveyor to provide income projections!!

In principle means little in circumstances such as this. The underwriter is going to require convincing that the resurrected business is sustainable and able to generate sufficient after tax income to repay the mortgage. Forecasts and business plans can easily be prepared with an optimistic outlook.

Basset.hound.mum

Many thanks for the reply. We understand the optimism bit, we have been very careful and have had P&L accounts signed off by an accountant in readiness.
We were just surpised that they have asked 'a surveyor'. He hasn't seen previous accounts, nor asked the sellers about their previous turnover.....Surely it isn't standard practice to ask a surveyor about accounting. The bank have had several months to look at the accounts provided so not sure what they are doing to justify their payment.
Appreciate your time though, thanks

Thrugelmir

Do you know precisely what the surveyor has been asked? Sometimes matters get misinterpreted when passed by word of mouth.

Basset.hound.mum

To prepare a report on expected income
We were told by the bank all we needed was a building valuation / bricks and mortar
Is there a magic formula to create figures, its a holiday complex. Closed at present but was successful previously,
Thanks again

Thrugelmir

Basset.hound.mum wrote: »

To prepare a report on expected income

Is there a magic formula to create figures, its a holiday complex.

As a commercial operation. The "surveyors" may well have expertise in valuing such businesses as going concerns. Know the local market etc. This is not surveying in the sense of build quality as for a mortgage to buy a house.

Basset.hound.mum

Ok, thank you for your time

silvercar

Has Natwest given you a personal bank manager (or whatever they now call them), they are usually good and sorting delays.

Basset.hound.mum

Hi Silvercar, yes and no....she's almost never there, will only deal with a broker and not direct.
Just seems that everytime we satisfy one requirement there's another one! We really are pushing to finish the deal before we loose out. It's a really fantastic opportunity,we know the business, the area and have some financial security.
I honestly through banks were looking for good investments but they seem to almost want us to pull out..... it's already cost thousands to get to this point, we don't want to waste that money.
Thanks for taking an interest, appreciate it

Thrugelmir

Basset.hound.mum wrote: »

I honestly through banks were looking for good investments

Banks don't invest. They lend money. Business plans are subjective. In days of old bank managers used to have complete discretion when lending. Now much gets referred to higher regional levels. For a personalised SME service one needs to approach an entity such as Handlesden Bank .