Mortgage offer still on ice pending valuation

ChloeManoey

Sorry you're having a rotten time with it again. 

What happens if you already have a mortgage offer? Are they asking people if their circumstances have changed, or is it down to the person to notify the lender?

Thrugelmir

ChloeManoey said:

What happens if you already have a mortgage offer? Are they asking people if their circumstances have changed, or is it down to the person to notify the lender?

The lender may well ask. Likewise all applicants to the mortgage, signed a declaration when signing the form that they would inform the lender of any material changes in circumstances. Uncomfortable times may well lie ahead for many. No time to be kidding oneself and playing games. 

csgohan4

kazzamunga said:

Blame Covid 19, not the banks, they were lending fine before that. In fact why not blame the government for their tighter regulations and hence based on affordability which was brought about from the 2008 crash and the sub prime market. 

Lenders are accountable more than ever and if you complained in 10 years time that they gave you a mortgage despite cutting wages to 75% they will be asked why they gave you mortgage as you may not have afforded it.  You can't have your cake and eat it. Lenders have to be strict and ensure they lend sustainably for both parties

Actually I disagree, because directly before Covid 19 I got turned down because a house that had sold several times with no problems in the last 20 years has suddenly become unmortgageable for being too close to a sleepy old socialist club in a sleepy little Yorkshire village, defined by the valuer as 'a nightclub'. So yeah, I've got previous with this. Their algorithms have gone mad in the last few years.

Also, your comment that I want to 'have my cake and eat it' is exactly the kind of annoying assumption that bolsters the banks and counts against ordinary people just trying to get a leg up. I don't have any intention of complaining, now or in ten years' time, about the amount I borrow. To give an idea of just how far within my comfort zone the mortgage amount is, I am on 75% wages and I am still managing to save twice the amount of the mortgage every month, and I and my partner are going to pay half each. So in fact, the amount I will have to pay on my supposedly risky mortgage, is a quarter of what I'm currently saving, after my monthly expenses.

So yeah, I think it's a bit of overkill, and I don't think I'm a risk, and I've never defaulted on previous mortgages or given the bank any cause for concern. And I have a perfect credit rating. So I do object to assumptions being made based on other people who may be more reckless with their money, and by default being lumped in with them.

Lets agree to disagree then, Look at how many mis sold mortgage threads there are on here, none of them upheld with the ombudsman. Mostly about interest only or self declaration mortgages before regulation was put in place.  Just saying you won't now, doesn't mean you won't in future. 

So it seems it's not the totally the banks fault, but rather the valuation. Understandably so, lenders/valuers don't like places too close to businesses, for example if your on top a take away shop. 

I am sure you are also aware they stress applications, so easily add 5%+ to interest on your 75% wages to see if you can afford it. Again even if you think you can afford it now, can you with a much higher interest rate?

I don't believe it's overkill, it's sustainable and to avoid another 2008 crash. We all had to abide by the same rules, your not being discriminated against. I had to wait a few years to get enough sa302's before applying due to being self employed, while if I was employed I could have applied straight away, who's fault was that? Certainly not the banks. Their money their rules. 

Don't like it, find another lender. 

You don't even know the outcome and you have given up already and pointing fingers. 

kazzamunga

I haven't 'given up already'. I've been desperately trying to buy a house since last August.
And there aren't any lenders doing similar products, that's the whole point. You prefer to 'let them eat cake', hey. 
Re SA302s, how is that relevant? That's completely standard, and I was in the same position myself three years ago, then a PAYE job came up. It's hardly comparable. 

Leonberger

We are in a similar situation.
Both working and have been throughout but our 95% mortgage with natwest is still on hold due to no valuation because of corona virus. Who knows if it will go through or not but the limbo is awful. 

kazzamunga

Hi @Leonberger, sorry to hear this - any luck with yours? We did end up going with another lender and stumping up another 5%. Still big delays from the buyer though, so no further forward.

Leonberger

kazzamunga said:

Hi @Leonberger, sorry to hear no this - any luck with yours? We did end up going with another lender and stumping up another 5%. Still big delays from the buyer though, so no further forward.

 We are still awaiting valuation. 

Really concerned about a down valuation now but not much we can do.
I stand to loose thousands if my chain collapses though 🙁

kazzamunga

That really sucks. Hope it works out for you. We switched mortgages but now have to cough up 15% instead of 10%. Valuation today, so we'll see. In our sale we've reached the stage where all the solicitors' enquiries are resolved and I think ordinarily we'd be arranging an exchange date. But the buyer seems not to be able to secure a mortgage...but no one knows for sure, because no one can get hold of her. So that's great. 

kazzamunga

The reason the buyer can't secure the mortgage is because she is an investor and the lender is going through her accounts with a fine toothcomb, and some of her tenants haven't paid their rent because of Covid etc. I know this is all unprecedented etc, but does anyone know what the chances are of her being able to convince her lender / any lender that this is just a temporary thing, etc? Or do you think that this is dead in the water? We've got to the end of the process now (we already got 3/4 of the way through previously with the same buyer, who pulled out and then came back again two months later!) and have spent about £1400 on solicitors' fees. Would really appreciate if she would actually talk to anyone, as it's so much worse to not be able to get through to her.