Underwritters - Confused with what is going on....

daniele9390

Sorry to post this, but I'm very confused and looking for some advice if possible. Our application is currently with the underwritters but is being held because the property is worth £40k more than we are paying (we are buying it for £155k and it was valued by Santander at £195k).

Santander are telling our broker that they are trying to find a solution...
What does this mean and what type of solution? Are there any underwritters on here, and if you were in this situation what would you do? We were originally meant to hear back from Santander on the 1st Nov, which has gone and we are very worried and hoping someone can help us.

Sorry but thanks in advance!

Thrugelmir

How has this situation arisen.

daniele9390

Thrugelmir wrote: »

How has this situation arisen.

We are renovating a property before purchase it, which the broker, solicitor and santander all agreed wouldn't be a problem before we started renovating
we are in a contract with the seller so if it all falls through then we are still covered but it seems to now be causing an issue with santander which we can't get our head around

jashdown

It is rare for a surveyor to declare an over-valuation - they are definitely sticking their chin out if they're wrong!

Because it is quite rare (especially by that amount (almost a third up on the asking offered price)) they will need to ensure it remains within policy. I would be surprised if it affected you too much aside from a better LTV position so you may see your payments drop if you hit the next bracket!

Your broker will need to evidence that it is not a family member discounting the purchase price for you as an example, I would like to think you shouldn't worry too much unless it is out of policy for the lender

Thrugelmir

Are you still renovating the property? Is it habitable?

daniele9390

Thrugelmir wrote: »

Are you still renovating the property? Is it habitable?

It is fully habitable, we've basically removed all wallpaper, painted the property white, put in a bathroom and a kitchen and fixed the broken stair case and rewired the house so no more renovations are happening now until the mortgage goes through (hopefully)

kingstreet

Is this your thread too?

https://forums.moneysavingexpert.com/discussion/6066432/what-happens-when-the-property-you-are-buying-is-up-valued