Incorrect Information Submitted by broker on mortgage application

lavalamp1

Hi All, Been a while since I've been here! Hoping for some advice.



We currently have a 3 bedroom house with a loft room which doesnt have building regulations/planning. We had an offer accepted on the house last month and the mortgage application was submitted by the broker for the buyer shortly after. A desktop valuation was carried out. The offer has now been received and it states that the property is 4 bedrooms, however it has always been marketed/listed as 3 bedrooms. The broker admits the mistake had been made, but cant pinpoint where the information came from regarding the 4th bedroom.



The solicitor has previously requested copies of the building regs, however we've always advised that these dont exist and that an indemnity policy is present. They have now reported this back to the lender and now wait to hear back.



What can we do in this situation given that the broker provided this incorrect information? Will the lender ask for a new application to be submitted with the correct details or accept the indemnity in lieu of the certificates?

Cscott139

A new application shouldn't need to be submitted but they will probably need to go back to the valuer as he may have given the value based on it being 4 bed.


Its quite common for indemnity insurances to be needed for this reason so that on its own should be ok although lenders can vary on what they are happy with.

[Deleted User]

It will get referred to the valuer once the sols has notified lender its a 3 bed asking if the valuation is to be changed as a result of the new information.
At that point the valuer will either:

Attend the property to check the value matches based on the new information; or
Redo a desktop val and confirm to lender all is fine


The building regs paperwork would always have been checked and it will have always been referred to the lender regardless of what was keyed for the survey

lavalamp1

Thanks both. In terms of time scales I've been told it takes 3-5 days for the lender to get back to the solicitor- Within this time could a new desktop valuation be carried out or would I need to factor in more time?



Presumably if the valuer has to come out to the house then a new survey fee would need to be paid?

[Deleted User]

Which lender is it? Most do free valuations anyway

It can take a few days for solicitor correspondence to get to the mortgage case manager, then up to 5 days for the valuer to review and respond, a further day or so for the mortgage underwriter to review and issue new offer or put case back to pending for a new valuation to be done

In the grand scheme of things its not a big deal, solicitors and lenders communicate all the time about building regs, unadopted road, leasehold garages on a freehold house, covenants on the property etc etc. Loads of things come up on the legal work that wasn't apparent on application.

lavalamp1

It's Santander - Do you know whether they accept indemnity in lieu of missing regs and planning? It's frustrating because it just adds more time to a process thats already dragged on.

lavalamp1

Just to follow up on this thread again, it is now with the valuer. Presumably this now goes back to the underwriter to re-issue another mortgage offer. So far 12 days since my initial message.

[Deleted User]

Santander have some really good rates at the moment for certain ltv bandwidths.

This means they are being a bit crippled with applications and service standards have dropped.
Undeewriters are working quite a few days behind at the moment so don't take any delay as a bad sign, it's just that they are really busy due to their rates

lavalamp1

Thanks. Do you know whether it goes straight to bottom of the pile of cases to re-visit, or is there some form of priority offered due it coming back from the valuer?

[Deleted User]

AFAIK from the broker world it just gets assessed by a document team and once checked what it is it gets sent to underwriters and dealt with on first come first served basis.

Escalation or prioritisation is rare and tends to only be if completion date has been set and work needs to be done post offer.
I would assume they would treat this as a normal price of casework and get to it as normal processing