Mortgage Application Woes

mrtip

Hi All

New forum member looking for a bit of advice or possibly just somewhere to vent my frustration

We've recently found a house that we love and have had our offer accepted, going through a broker we applied for a mortgage only for it to be down valued because it was near to a school (go figure )

Broker found another mortgage and the valuation came back bang on the asking price however the LTV was reduced by 10% by the underwriters because the house has had a load bearing wall removed creating a kitchen/diner. The work has all been done above board with full documentation etc so shouldn't be a problem.

Our broker is looking for another lender that would be happy with the property changes but I'm wondering if anyone has come across this before and successfully appealed against the underwriters? I don't want to keep applying for mortgages as it's not going to do my credit record any good.

Thanks in advance

amnblog

Might be smarter to heed the warnings generated by the two valuations you have had.

MovingForwards

There are only a handful of survey companies mortgage companies use, you have used two of them so far, the next one may be from the same survey company as the first one. Meanwhile you have potentially had at least two credit checks in a short space of time and are considering a third.

What happens if that one doesn't go the way you want it to or you start to get declined at application stage?

mrtip

Thank you both for your replies.

Since posting this our broker has been able to speak to the business development manager and various other people at the lender and there is fundamentally nothing wrong with the house hence the correct valuation the second time around.

However because the vendor has done substantial renovation work to the house (new roof, windows, kitchen/diner, new kitchen, new bathroom, front/rear gardens, new central heating, full rewire etc. etc) the lender is effectively classing it as a new build and that's why they are limiting the LTV to 85%.

We're obviously appealing this decision as the foot print of the property hasn't changed and it was built over 80 years ago. What has been done to the property may be substantial however apart from the remedial works most of it has been internal/external decoration.

Fingers crossed they see sense!